JULY 2012 VOL. 117 NO. 7

FEATURE ARTICLES NEWS/4 MINEXPO PREVIEW/30

24 China Ship Congestion—How So Many Capesize Ships Got Locked Out of China’s Ports

30 MINExpo 2012 Preview Las Vegas hosts the largest exposition for mining and mineral processing

48 Engineering the New Wild Boar Prep Plant The design integrates safety and maintenance consideration with simplified circuits

54 Public Relations vs. Public Affairs PREP PLANT DESIGN/48 BUYERS GUIDE/56 Knowing the difference, companies can communicate better

56 Coal Age Buyers Guide 2012

68 An Observation About Exporting Coal to China

71 Fiber Optics Report Pendant Line Conditions

COAL IN THE NEWS

4 Senate rejects the Stop UMACT Rule

4 Patriot Coal files for Chapter 11 reorganization to improve the company’s long-term prospects

5 Rhino temporarily idles CAPP production

6 EPA targets Essar Group for CWA violations 8 Hallador seeks permit for Allerton THIS ISSUE 10 Kentucky bans habitual offenders from mining

10 UBB is permanently sealed

12 Kentucky coal operator ordered to reinstate miner to job This month, Coal Age offers readers an inside look at what they will see at MINExpo INTERNATIONAL 2012. More 14 CONSOL Energy idles Fola, extends summer vacation for some longwall miners than 1,800 companies will participate in the world’s largest mining exposition. On the cover, the view from the Joy- 16 Arch Coal responds to market downturn Global stand at MINExpo 2008. (Photo: Lee Buchsbaum) 18 MSHA turns its attention to ribs again

20 Cloud Peak acquires CONSOL Energy’s PRB assets

22 Iron ore miners need coal-fired power DEPARTMENTS 2 Editorial WORLD NEWS 4 Coal in the News 5 Rio Tinto makes first coal shipment from Mozambique 5 World News

BHP approves Appin Area 9 project in Australia 12 People 14 Dateline Washington China’s major ports face coal oversupply 16 Calendar 6 Anglo American gets consent for Grovenor project 18 in Australia Awards 20 Letters to the Editor Colombian coal exports drop in May 68 Market Watch 8 Prospects for Donkin revival doubtful 71 Operating Ideas India to decide on coal block de-allocation 72 Suppliers News 74 Product News 77 Classified 80 Legally Speaking

July 2012 www.coalage.com 1 editor’s note Rockefeller Tells Coal Industry to Wake Up www.mining-media.com Mining Media International Editorial Office he U.S. Senate failed to pass a bill that would have stopped 11555 Central Parkway, Suite 401 Tone of the EPA’s most onerous standards for power plant Jacksonville, Florida 32224 U.S.A. emissions (See News, p. 4). Five Democrat senators, including Phone: +1.904.721.2925 Fax: +1.904.721.2930 Joe Manchin (D-WV), crossed party lines and voted against the EPA’s War on Coal. Another West Virginia politician, Sen. Jay Editor-In-Chief—Steve Fiscor, [email protected] Rockefeller, did not. Not only did he not support it, he decided Western Field Editor—Russ Carter, [email protected] to lecture the coal industry in a fashion similar to the late European Editor—Simon Walker, [email protected] Robert C. Byrd during his final days. Meanwhile, more mining BY STEVE FISCOR jobs are disappearing from Appalachia. Arch Coal and CON- Latin American Editor—Oscar Martinez, [email protected] / EDITOR-IN-CHIEF SOL Energy announced they would idle mines in West Virginia, Associate Editor—Gina Tverdak-Slattery, [email protected] and Patriot Coal filed for bankruptcy protection. Associate Editor & Photographer— Environmental activists immediately praised Rockefeller as a politician who Lee Buchsbaum, [email protected] now sees the light, while the coal industry expressed shock. Citing all of the EPA’s War on Coal rhetoric in Appalachia, Rockefeller berated coal industry leaders and Graphic Designer—Austin St. Clair, [email protected] said, “The reality is that many who run the coal industry today would rather attack false enemies and deny real problems than find solutions.” Readers can review his Mining Media International Corporate Office speech in its entirety at: http://www.rockefeller.senate.gov. 8751 East Hampden, Suite B1 Rockefeller said that two years ago he tried to break the logjam in Congress with Denver, Colorado 80231 U.S.A. a plan that would have given them an opportunity to address carbon issues legisla- Phone: +1.303.283.0640 tively. He said coal operators went for broke when they demanded a complete Fax: +1.303.283.0641 repeal of all EPA authority to address carbon emissions forever. “They demanded President/Publisher—Peter Johnson, [email protected] all or nothing, turned aside a compromise and in the end got nothing,” Rockefeller Vice President of Sales & Marketing—John Bold, [email protected] said. Last year, the coal industry, according to Rockefeller, ran exactly the same play, demanding all or nothing on the cross-state air pollution rule and they lost U.S. & Canada Sales Manager—Victor Matteucci, [email protected] again, badly. In Rockefeller’s eyes, the Inhofe Resolution represented yet another Scandinavia, UK and European Sales Manager—Colm Barry, [email protected] all-or-nothing resolution destined to fail. German Sales Manager—Gerd Strasmann, [email protected] The coal industry could probably follow the logic of a frustrated politician trying Classified Advertising—Norm Rose, [email protected] to be diplomatic, but then he went on to defend the “science” behind the EPA’s Show Manager—Tanna Holzer, [email protected] decision, which the National Mining Association and other groups have ques- tioned and largely discredited. He also blamed power generators for continuing to Ad Traffic Manager—Erica Freeman, [email protected] take profits on plants rather than upgrading them. Rockefeller said the natural gas industry looks to the future, while the coal industry clings to the past. “It’s not too late for the coal industry to step up and lead by embracing the realities of today and creating a sustainable future,” Rockefeller said. “Discard the scare tactics. Stop denying science.” The Inhofe Resolution failed by four votes. Rockefeller’s vote would not have mattered, but what he said does. His views in a lot of ways invoke the class warfare Coal Age, Volume 117, Issue 7, (ISSN 1040-7820) is published monthly by Mining Media Inc., 10 Sedgwick Drive, Englewood, Colorado 80113 (mining-media.com). rhetoric coming from Democratic leadership during this election year. In his Periodicals postage paid at Englewood, CO, and additional mailing offices. Canada speech, he referred to organized labor negotiations and past leaders from the Post Publications Mail Agreement No. 40845540. Canada return address: Station A, PO Box 54, Windsor ON N9A 6J5, Email: [email protected]. Current and back 1980s, showing that he too clings to the past. He vilifies coal and utility executives, issues and additional resources, including subscription request forms and an editorial blaming decisions in the “boardroom.” What he also fails to explain to the miners is calendar, are available online at www.coalage.com. that the EPA has tipped the scales in favor of natural gas. There is a lot more on the SUBSCRIPTION RATES: Free and controlled circulation to qualified subscribers. line here than mining jobs. When these coal companies go out of business, the Non-qualified persons may subscribe at the following rates: USA and Canada, 1 year, $56.00, 2 year, $96.00, 3 year, $162.00, Student, $16.00, Outside the USA and knock-on effect will be enormous. Will West Virginia pick up the tab for unfunded Canada, 1 year, $77.00, 2 year, $137.00, 3 year, $225.00 surface mail (1 year, legacy costs, such as retirees and their dependents? Rockefeller not only angered $145.00, 2 year, $257.00 airmail delivery). For subscriber services or to order single an entire generation of active coal miners, he also just abandoned a generation of copies, write to Coal Age, 8751 East Hampden, Suite B1, Denver, CO 80231 USA; call +1.303.283.0640 (USA) or visit www.mining-media.com. retired folks that put him in power. ARCHIVES AND MICROFORM: This magazine is available for research and retrieval of select- ed archived articles from leading electronic databases and online search services, including Factiva, LexisNexis, and Proquest. For microform availability, contact ProQuest at 800-521- 0600 or +1.734.761.4700, or search the Serials in Microform listings at www.proquest.com.

POSTMASTER: Send address changes to Coal Age, P.O. Box 1337, Skokie, IL 60076 USA. REPRINTS: Mining Media Inc, 8751 East Hampden, Suite B1, Denver, CO 80231 USA Steve Fiscor, Coal Age Editor-In-Chief phone: +1.303.283.0640, fax: +1.303.283.0641, www.mining-media.com [email protected] PHOTOCOPIES: Authorization to photocopy articles for internal corporate, personal, or instructional use may be obtained from the Copyright Clearance Center (CCC) at +1.978.750.8400. Obtain further information at www.copyright.com.

COPYRIGHT 2012: Coal Age, incorporating Coal and 2 www.coalage.com Coal Mining & Processing. ALL RIGHTS RESERVED.

news Senate Rejects the Stop UMACT Rule

On June 20, 2012, the U.S. Senate failed to pass by a vote of 53-46 Sen. James Inhofe’s (R-Okla.) resolution (S.J. Res. 37) to overturn the Environmental Protection Agency’s (EPA) Utility MACT rule, according to the National Mining Association (NMA). Inhofe and other critics say the rule, forcing cuts in air toxics and separate regulations on smog-forming pollutants, would raise power costs, harm the economy and cost jobs by leading to the closure of a substantial number of coal-based power plants. “Today’s regrettable vote locks in higher electricity rates for consumers and businesses for the foreseeable future,” NMA President and CEO Hal Quinn said in a statement following the vote. “It’s unfortunate that a number of senators from states whose economies rely on affordable, coal-based electricity could not see their way to supporting their communities and the nation’s economic growth at a time when the need is greatest.” Source: American Coalition for Clean Coal Electricity. “Our fight is not over,” said Sen. Inhofe in a statement follow- ing the vote. “We will continue to do everything possible to expose Commerce and the National Federation of Independent Business, what the Obama-EPA’s damaging regulatory regime will do to among others, also supported the bill. destroy jobs and weaken our economy, and work every day in our The White House, in a Statement of Administration Policy, efforts to stop President Obama’s war on oil, gas and coal.” threatened to veto the bill had it passed the Senate and the House. The NMA led an extensive advocacy campaign to support Five Democrats and five Republican senators crossed party lines Inhofe’s measure through grassroots activities, earned media and for the vote, with Democratic Sens. Mary Landrieu (La.), Joe paid advertisements in key states. Other organizations, including Manchin (W.Va.), Ben Nelson (Neb.), Mark Warner (Va.) and Jim the United Mine Workers of America, the U.S. Chamber of Webb (Va.) voting for the measure, and Republican Sens. Lamar

± BREAKING NEWS

Patriot Coal Files for Chapter 11 Reorganization to Improve the address important issues in an orderly way and make the company Company’s Long-term Prospects stronger and more competitive.” Patriot Coal Corp. recently announced that Patriot and substantially all of “We remain firmly committed to serving our customers and to being a its wholly-owned subsidiaries have filed voluntary petitions for reorgani- good employer by maintaining safe, productive operations as we under- zation under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court take this process,” said Patriot President and COO Ben Hatfield. “The for the Southern District of New York. Patriot has taken this action in skills of our employees and the quality of our service provide an excellent order to undertake a comprehensive financial restructuring. Patriot platform for Patriot’s future success. We appreciate the ongoing dedica- expects its mining operations and customer shipments to continue in the tion of our employees, whose hard work is critical to our success and the ordinary course throughout the reorganization process. future of our company.” Patriot believes the protection afforded by a court-supervised reor- Patriot’s business outlook has been impacted by a number of chal- ganization process, including the ability to access new financing, will lenges that are affecting the coal industry, including reductions in U.S. provide the company with additional time and flexibility to address its thermal coal demand due to competition from low priced natural gas, financial challenges and position Patriot for long-term viability and challenging environmental regulations affecting the cost of producing success. and using coal, and weaker international and domestic economies. The In conjunction with its reorganization, Patriot has obtained a commit- company has reacted to the lower domestic demand by reducing produc- ment for $802 million in debtor-in-possession (DIP) financing from tion and increasing sales to the export markets. During recent months, Citigroup Global Markets Inc., Barclays Bank PLC, Merrill Lynch, and the cancellation of customer contracts, lower thermal coal prices and ris- Pierce, Fenner & Smith Inc. as joint lead arrangers. Upon approval by the ing expenditures for environmental and other liabilities have severely Bankruptcy Court, the new financing and cash generated from Patriot’s constrained the company’s liquidity and financial flexibility. ongoing operations will be used to support the business during the reor- Patriot has filed various motions with the Bankruptcy Court in sup- ganization process. port of its reorganization, including requesting authorization to continue “The coal industry is undergoing a major transformation and Patriot’s paying employee wages and providing health care and other benefits. existing capital structure prevents it from making the necessary adjust- Patriot has also asked for authority to continue existing customer pro- ments to achieve long-term success,” said Patriot Chairman and CEO Irl grams and intends to pay suppliers in full under normal terms for goods F. Engelhardt. “Our objective is to use the reorganization process to and services provided after the filing date of July 9, 2012.

4 www.coalage.com July 2012 news continued

TOP 10 COAL-PRODUCING STATES WORLD NEWS ¸ ˛ ˝ ¸ (in Thousand Short Tons) Rio Tinto Makes First Coal Shipment from Mozambique Week Ending (6/30/12) Rio Tinto has started exporting premium hard coking coal from its YTD ‘12 YTD ‘11 % Change Benga mine in the Moatize Basin in Mozambique. The first ship- Wyoming 191,134 211,000 -9.4 ment of 34,000 metric tons has left the Port of Beira, bound for an West Virginia 65,114 70,554 -7.7 Indian steel mill. Kentucky 51,481 54,823 -6.1 ÒThis shipment marks an important point in the phased devel- Pennsylvania 28,955 30,095 -3.8 opment of our tier one coking coal resources in Mozambique. It is Illinois 19,977 17,803 12.2 the first step toward our aim to become a significant supplier of Texas 19,907 22,103 -9.9 hard coking coal to the seaborne market,Ó said Rio Tinto Energy Montana 19,022 17,856 -6.5 Indiana 18,340 18,498 -0.9 Chief Executive Doug Ritchie. ÒThe Moatize Basin is one of the most Colorado 14,524 12,686 14.5 prospective coking coal regions in the world. We continue to evalu- Ohio 13,890 13,870 0.1 ate the most effective means of developing our resources to create value for shareholders and bring benefits to the people of U.S. Total 503,908 537,258 -6.2 Mozambique. We are also continuing to work with the Government of Mozambique to secure the development of comprehensive infra- Alexander (Tenn.), Kelly Ayotte (N.H.), Scott Brown (Mass.), structure for efficient transport of coal from mine to port, which is Susan Collins (Maine) and Olympia Snowe (Maine) voting against a priority for the further development of the region.Ó Inhofe’s proposal. Sen. Mark Kirk (R-Ill.), recovering from a stroke The Benga mine, located in the Moatize Basin of Tete in the suffered in January, did not vote. north of Mozambique, is operated by Rio Tinto and is a joint venture between Rio Tinto (65%) and Tata Steel (35%). Rhino Temporarily Idles CAPP Production The soft coal market in the United States prompted Rhino Resource BHP Approves Appin Area 9 Project in Australia Partners to temporarily shutter most of its Central Appalachian BHP Billiton approved the investment of $845 million to sustain mines this summer in an attempt to slash bulging inventories. The operations at Illawarra Coal in southern New South Wales, idlings, which affected the Lexington, Ky.-based company’s Tug Australia, by establishing a replacement mining area at the Appin River and Rob Fork complexes, began in June and were expected to mine. The replacement area will have a production capacity of 3.5 last about five weeks, according to David Zatezalo, Rhino’s presi- million metric tons per year (mtpy) of metallurgical coal and will dent and CEO. Tug River is located in eastern Kentucky and West sustain Illawarra CoalÕs production capacity at 9 million mtpy. Virginia while Rob Fork is in eastern Kentucky. Appin Area 9 will be operational in 2016 and will replace produc- Zatezalo and Rick Boone, the company’s senior vice president and tion at the West Cliff mine. The project includes roadway develop- CFO, discussed the cutbacks and provided an updated operational ment, new ventilation infrastructure, new and reconfigured report at Raymond James Coal Investors Conference in New York. conveyors and other mine services. They stressed the mine shutdowns, which affected about 200 miners, ÒThis is good news for local jobs and the economy in the were temporary in nature. “We are fulfilling existing contracts in a region,Ó said Hubie van Dalsen, president, metallurgical coal, BHP cost-efficient manner,” Zatezalo said, adding the market downturn Billiton. ÒThe investment sustains Illawarra CoalÕs production rates has affected all of the company’s operations in some way. and recognizes the value of its high quality metallurgical coal Added Boone: “We are going to ship all our coal.” resources.Ó Least affected by the market downturn, Zatezalo said, are The development has received all necessary regulatory Rhino’s Hopedale and Sands Hill steam coal operations in approvals. Northern Appalachia and the Castle Valley complex in Utah, where longer coal sales contracts are in place. Hopedale is an China’s Major Ports Face Coal Oversupply underground complex near Cadiz, Ohio, while Sands Hill consists Xinhua Online reported that coal inventories in Qinhuangdao, of two active surface mines in southeastern Ohio. Both produce Tangshan and Huanghua, Chinas major coal ports, have reached high-sulfur steam coal. Castle Valley produces western bitumi- record highs recently. According to the latest figures, coal supplies nous coal and is comprised of underground mining assets in among the three ports totaled 18.3 million metric tons (mt) on June Carbon and Emery counties acquired by Rhino in August 2010 30 or 8.6 million, 8.4 million and 1.3 million mt respectively. from C.W. Mining Co. Qinhuangdao Port, located in north China Hebei province, is the In Ohio, Rhino has received a conditional mining permit for its worldÕs largest coal loading port and it handles half of ChinaÕs coal Leesville operation, which would be a “sister” mine to Hopedale. needs. On June 25, the coal inventory in storage at Qinhuangdao At Hopedale, Rhino is permitting a No. 7 seam reserve that would totaled a little more than 9 million mt, while the total capacity is be accessed from the existing portal and infrastructure. 10 million mt. On June 18, coal inventories at this port hit 9.46 mil- At Sands Hill, meanwhile, Rhino has acquired an estimated 2.5 lion mt, the highest level since November 2008. million tons of underground reserves the company plans to bring At the Port of Tangshan, which is also strategically located in Hebei on line in the future as the market improves. to transport coal from northern to southern China, the coal inventory on Recently, Rhino purchased leasing rights to an estimated 30 million tons of high-sulfur reserves along the Green River in west- Continued on pg 6...

July 2012 www.coalage.com 5 news continued

ern Kentucky. Zatezalo said the company would develop the Continued from pg 5... Pennyrile Energy reserves with an eye to the export market. June 25 totaled 8.1 million mt, just shy of the maximum volume of 8.7 Zatezalo said Rhino also has proven up about 8.6 million tons million mt. China is consuming coal at a rate of 300 million mt per of met coal reserves at its Rich Mountain asset near Elkins, W.Va. month. “The increase of imported coal affected the price of domestic The 32,600-acre property was acquired last year. coal, as well as the domestic coal market,” said Song Xinting, vice pres- Still on the drawing board is the proposed Taylorville under- ident of the Coal Transportation and Distribution Association of Hebei ground steam coal mine in Christian County, Ill. The mine would be province. He said that as the southern parts of China have seen plentiful located at the site of a coal gasification plant Tenaska had planned rainfall this year, hydropower generation output has increased. for central Illinois. Earlier this year, however, Tenaska switched Meanwhile, in the eastern areas of China, natural gas has been used for gears, saying it first wanted to build a natural gas-fired plant, with a generating electricity this year, another factor trimming thermal coal coal gasification element possibly added several years later. Illinois demand. (See related article, p. 24) legislators have not approved either plan, and Tenaska still is trying to decide whether to seek legislative approval in the General Sojitz Buys into Chinese Firm for Coking Coal Assembly’s two-week fall veto session in November. Sojitz Corp. will begin processing and distributing Mongolian coal by taking a stake in a Chinese company, hoping to begin exporting EPA Targets Essar Group for CWA Violations coking coal to steelmakers in Japan within a few years. According Seven Central Appalachian coal companies owned by India’s Essar to The Nikkei, the trading house will buy a 10% interest (¥30 mil- Group plan to formally respond in mid-August to a federal lion or US$4.8 million) in a coal company based in China’s Inner Environmental Protection Agency lawsuit accusing them of violat- Mongolia Autonomous Region. The firm is a wholly-owned sub- ing the Clean Water Act (CWA) at mountaintop removal mines in sidiary of Chinese resource giant Ordos group. Only licensed firms 2005 and 2007. The companies—Frasure Creek Mining LLC, Essar can transport coal between Mongolia and China. About 30 local Minerals, Trinity Corp., Trinity Coal Partners LLC, Bear Fork firms control this business, and new licenses are believed to be dif- Resources LLC, Falcon Resources LLC and Prater Branch Resources ficult to get. The Ordos unit is among the roughly five such compa- LLC—are accused in the suit, filed in June in the U.S. District Court nies that have their own processing facilities, and the firm also has for the Eastern District of Kentucky, of illegally dumping pollutants an export license. Sojitz plans to initially deliver Mongolian coal to from mining sites in Floyd, Magoffin and Pike counties in eastern Chinese steelmakers and firms that sell coal as fuel, hoping to Kentucky into five tributaries of the Levisa Fork River. begin exports to Japanese steelmakers and others within several Essar Minerals, a subsidiary of Mumbai, India-based Essar, years. It may also join hands with the Ordos group to develop coal acquired Trinity and its subsidiaries in 2010 for approximately resources in Mongolia in the future. $600 million from Denham Capital, a global private equity firm in Boston, Mass. Anglo American Gets Consent for Grosvenor Project in Australia According to the suit, the companies began surface mining at The provincial government of Queensland has granted consent to the 682-acre Bear Fork site in Pike County in December 2005, Anglo American for its proposal to build its $1.7 billion Grosvenor constructing two hollow-fills and two sediment ponds in streams mine project in Queensland’s Bowen Basin Australia, the Minerals at the site without a CWA permit. and Materials Energy Business Review reported. “The Grosvenor mine On November 1, 2007, the suit said, surface mining operations will create up to 1,000 new jobs for Queenslanders and represents a commenced at the 768-acre Hale Fork site in both Floyd and significant expansion of Anglo American’s Queensland operations,” Magoffin counties. One hollow-fill and three sediment ponds were said Andrew Cripps, Queensland Natural Resources and Mines constructed in streams at the site without a CWA suit, the suit said. Minister. Seamus French, Anglo American Metallurgical Coal Business The suit said the defendants never obtained a Section 404 CWA per- CEO, said the company would safely develop a high quality operation mit for their mining operations at Bear Fork or Hale Fork, “despite over the next four years which would offer benefits to the community, the fact that their surface mining operations involved excavating the state and the people it employs. First coal production is planned coal seams, then placing the excavated rock and dirt, or overburden, in 2013 while longwall mining will begin in 2016. in streams that are jurisdictional waters of the United States.” Since 2005, the companies’ surface mining operations have Colombian Coal Exports Drop in May resulted in the excavation and filling of approximately 11,256 lin- Colombian coal exports eased by 500,000 metric tons (mt) month- ear ft of streams at the two sites, the suit said—approximately on-month to 6.7 million metric tons in May, Montel reported. Citing 7,750 linear ft at Bear Fork and 3,506 linear ft at Hale Fork. trade data, “Most of the monthly decline was due to lower exports Streams at the two sites are “perennial streams that are tributaries to the Far East Asia, down from 1.8 million mt in April to 800,000 to Levisa Fork.” mt in May. However, combined exports to the Americas and Europe A spokesman for Essar Group in London, England, declined to were up 400,000 mt month-on-month to 5.9 million mt in May.” comment. In early July, the United States and the defendants filed a stip- Czech Police Starts Prosecuting Former Czech Coal Moguls over MUS ulation with the court that gives the companies until August 17 to Czech police have started prosecuting six former managers of the submit their formal answer to the government’s complaint. MUS coal mining company over its privatization deal. According to Essar Group has operations in more than 25 countries across five continents, including North America. It employs 75,000 peo- Continued on pg 8... ple and has annual earnings of more than US$27 billion.

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Continued from pg 6... Alliance Remains on Target Although the United States will continue to represent the primary CTK News Agency, police have started delivering the indictments. market for Alliance Resource Partners over the next few years, the The indictments did not relate to the process of privatization. The Tulsa, Okla.-based company is casting a longing eye overseas and incriminated acts described in the resolution had occurred at the potential growth in export sales. At least some of those increased time when its protagonists were owners of MUS. The charges had sales to foreign customers may come from Alliance’s new Gibson resulted from a social pressure and were illegal. The privatization South underground mine near Princeton in Gibson County, Ind., of MUS has been investigated by the Swiss authorities since 2005 on which construction is under way. on suspicion of financial machinations. The Swiss prosecutor’s Brian Cantrell, Alliance senior vice president and CFO, told office has charged seven people over the case. Last year, the Swiss the Raymond James Coal Investors Conference in New York in prosecutor filed a lawsuit against seven people, former managers June that Gibson’s mid-sulfur coal reserves are attracting atten- of the MUS and the Appian Group. They are six Czechs and one tion from export customers. Belgian. In mid-April, however, the Swiss court returned the file to “This is a very attractive product, a mid-sulfur product that the prosecutor for gathering further evidence. The Czech Republic travels well,” Cantrell said. “It’s on target to bring initial produc- has failed to join the Swiss criminal proceedings due to delays and tion into the marketplace in the third quarter of 2014.” Once in sluggishness on the part of the Czech authorities. The Czech peak operation, Gibson South is targeted to produce about 3.3 Republic is in the position of an aggrieved party. It will attend fur- million tons of coal annually, drawing from “a nice, long reserve ther proceedings and it has prepared a civilian action to file. base.” The Czech Republic lost billions of crowns in the MUS shares While Alliance is starting to see overseas interest in Gibson’s transactions. thermal product, Cantrell said the company’s River View under- ground mine about 50 miles away along the Ohio River in Union Prospects for Donkin Revival Doubtful County, Ky., also presents opportunities for export. After produc- Erdene Resource Development Corp. will probably have to pull out of ing its first load of high-sulfur coal August 17, 2009, River View has the Donkin coal project in Cape Breton unless it finds a new partner, enjoyed a steady surge in output. The mine produced nearly 7.6 The Chronicle Herald reported. In April, Xstrata Coal, which owns a million tons of coal in 2011 and 2.3 million tons in the first quarter 75% interest in the Donkin mine, said it was pulling out and trying to of 2012. find another project operator. Peter Akerley, Erdene president and On May 16, Alliance started longwall production at its newest CEO, said Xstrata hired Citibank to search for potential buyers. That mine, Tunnel Ridge in Ohio County, W.Va., and Washington process should be concluded by the end of the year. If Xstrata fails to County, Pa. The mine is expected to produce about 2.8 million find someone to operate the project, he said it was unlikely that tons this year, ramping up to a full run rate of 6.5 million to 6.8 Erdene, which has a 25% interest in the project, would continue the million tons by 2014. exploration phase by itself. That admission is not overly surprising: Alliance traditionally has developed its own mine projects. the Dartmouth junior mining company had revenues of less than With White Oak Resources’ No. 1 mine near McLeansboro in US$900,000 in 2011. Akerley told shareholders the company plans to Hamilton County, Ill., it is pursuing a different strategy. Cantrell separate the company’s coal assets and its metals interests in said the White Oak transaction “is a little bit of a step-out from Mongolia into two separate entities. He said the move would prevent what we’ve done in the past.” Alliance essentially is investing in unnecessary dilution of both assets. the operation and will not actually operate the longwall mine when it begins production in a couple of years. The No. 1 mine is India to Decide on Coal Block De-allocation expected to produce about 6 million tons of high-sulfur coal The Indian coal ministry has decided to form an Inter-Ministerial annually. Group with ministries such as power and steel on board, to formal- “We have three different streams of cash flow” with White ly decide on de-allocating the non-performing blocks or forfeiting Oak, Cantrell said. “We own the reserves, own the surface facili- the bank guarantees of the companies which have done nothing to ties, and are building the prep plant and we’ll receive a through- develop the block after allocation. According to Indian Express, the put stream from the coal. And, we put an equity investment into ministry move comes on enhanced public scrutiny on the allocation White Oak Resources and we receive preferred distributions.” process and the subsequent move by the Central Vigilance After producing 31 million tons of coal in 2011, Alliance is Commission asking the CBI to probe any alleged discrepancies in poised for significant growth, with production projected to rise to allotment of coal blocks between 2005 to 2008 during which 15 50 million tons in 2016. and 16 coal blocks were allotted. Already 32 companies have been warned that they may lose their bank guarantees if the progress on Hallador Seeks Permit for Allerton developing blocks continues to remain unsatisfactory. Similarly, 58 Another new underground mine is coming to the Illinois high-sul- firms have been told that they risk de-allocation as the ministry fur coalfield now that Sunrise Coal LLC, a subsidiary of Hallador has found their progress below expectation. Energy, has submitted a permit application to the state Department of Natural Resources’ Office of Mines and Minerals in Springfield. The agency received a formal permit request June 8 for the proposed Allerton mine in Vermilion County, in east-cen- ˛ tral Illinois near the Indiana border. Mines and Minerals hopes to issue a permit by the end of 2012 but there are no guarantees, according to Scott Fowler, supervisor in DNR’s Land Reclamation

8 www.coalage.com July 2012 news continued

Division. “We’re backlogged,” he said in late June about process- Kentucky Bans Habitual ing pending mine applications. “We’re hoping” to approve the Offenders from Mining permit by year’s end, “but I have my doubts.” Sunrise/Hallador, though, are not in a big hurry. Company Kentucky has enacted a “three strikes” law that bans miners from officials are counting on getting the permit sometime in 2013, working in the state’s underground and surface mines if they fail a said Hallador President Brent Bilsland. Once the permit is in drug/alcohol test for a third time. House Bill 385, which took effect in hand, the company will evaluate the market for Allerton’s high- June after it was signed by Governor Steve Beshear, is an attempt to sulfur steam coal and decide whether to proceed to the construc- address what some state mine-safety advocates say is a worsening tion stage. problem of drug and alcohol use in the mines. As evidence, they point Allerton could be in production in 2014. At peak production, it out that more than 1,500 Kentucky miners tested positive for drug use would extract 3 million to 3.5 million tons annually, drawing from over a six-year period ending in February. a “controlled” reserve base of at least 32.3 million tons of recover- The new law amends the current process for testing miners by the able coal. Total estimated reserves are around 54 million tons. state Office of Mine Safety and Licensing. It updates the 11-panel test, Like Sunrise/Hallador’s other deep mine in neighboring giving the state Mine Safety Review Commission authority to add addi- Indiana, Carlisle in Sullivan County, Allerton would be a continu- tional components to the test. ous miner operation. Development of Carlisle began in March Beshear, a two-term Democrat from western Kentucky, traveled to 2006, and reached coal in December 2006. From February-July Pike County, a traditional coal mining county in eastern Kentucky, to 2007, the mine produced 400,000 tons, and its output since has sign the legislation. “Providing a safe work environment for our min- steadily increased to about 3.3 million tons in 2011. ers, both below and above ground, is one of the most important duties Bilsland expects Carlisle to produce slightly less than 3 million we have as regulators,” he said. “With the implementation of this leg- tons this year, as two of the mine’s customers asked Sunrise to islation, we are not only helping miners get home safely to their fami- store some coal at the mine because their burns are down due to lies every night, but also allowing those with drug or alcohol problems reduced electricity demand. Carlisle supplies coal to Indianapolis to get treatment. This will help them resume work to provide an income Power & Light, Hoosier Energy and Duke Energy Indiana. for their families and improve the safety of the workplace for others.” Illinois Coal Association President Phil Gonet believes Allerton State Representative Jim Gooch, D-Providence, sponsored the bill, would fit right in with the state’s growing industry. Cline Group which raced through the Legislature earlier this year with nary a nega- subsidiaries are operating or developing four underground mine tive vote. H.B. 385 passed the House of Representatives, 98 to 0, complexes in the Midwestern state, three featuring longwall min- February 29, and the Senate, 36 to 0, March 26. ing systems. Privately-owned White Oak Resources, with financial “By making sure that coal miners are not working alongside others support from Alliance Resource Partners, is building the White impaired by illegal drugs, H.B. 385 will build on our work in 2006 when Oak No. 1 mine near McLeansboro in Hamilton County. we became the first state to require coal miners to be certified,” Gooch Meanwhile, the Lively Grove mine near Marissa in Washington said. “This law is the next logical step.” County has started to supply coal to the new 1,600-megawatt The new law provides a treatment option for those miners reported Prairie State Energy Campus coal-fired power plant. Both White for the first time, allowing their certificate to be reinstated following an Oak No. 1 and Lively Grove also are continuous miner operations. evaluation for substance abuse, the completion of a treatment pro- Hallador Energy, whose principal owner is Yorktown Partners, gram, and a clean drug test in lieu of an appeal or revocation. acquired 80% of Sunrise Coal in 2006 to provide the financing Officials say prescription drugs such as oxycodone and needed to develop Carlisle. In September 2009, Hallador pur- hydrocodone are among the drugs most abused in Kentucky mines. chased the remaining 20% of Sunrise. However, some miners also have tested positive for illegal drugs like marijuana. UBB is Permanently Sealed According to The Associated Press and local reporting by the Beckley, W.Va. Register-Herald Reporter, the final concrete seals were put in place on June 20 at the Upper Big Branch mine site in Montcoal, W.Va., according to officials with the mines’ current owner Alpha Natural Resources. Two years ago in April, 29 men were killed in an explosion at Upper Big Branch (UBB) mine in the worst U.S. coal mining disaster in four decades, devastating dozens of southern West Virginia families. At the time of the explosion, UBB was owned by Massey Energy. Alpha Natural Resources bought Massey Energy and took over its operations last summer. The announcement to seal the mine portals, was made this year at the beginning of April. Ted Pile, Alpha’s vice president of corporate communications, said the decision to seal the mine was “clearly a consensus decision.” Kentucky Gov. Steve Beshear recently signed House Bill 385 that bans miners from working in the state’s mines if they fail a drug/alcohol test He said crews have covered the concrete seals with fill dirt and for a third time. (Photo courtesy of Gov. Steve Beshear) are actively hydroseeding the area. “We expect to be finished with all activities at Upper Big Branch within the next few weeks.”

10 www.coalage.com July 2012

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Kentucky Coal Operator Ordered to Reinstate Miner to Job has filed a complaint regarding a health or safety violation. MSHA The Mine Safety and Health Administration (MSHA) announced that initiated an investigation, and upon finding merit to the com- an administrative law judge with the Federal Mine Safety and Health plaint, filed the case with the review commission. Review Commission has ordered Cumberland River Coal Co. to rein- According to court documents, Cumberland River Coal state miner Charles Howard to his former job and pay a civil penalty of refused to allow Howard to return to his job after being released $30,000, increasing the agency’s original proposed penalty of $20,000. to return to work by his treating physician. Instead, the mine Howard, who worked at Band Mill No. 2 mine in Letcher operator sought the supplemental opinion of a doctor who, after County, Ky., suffered head injuries on the job in June 2010 and changing his mind from his earlier diagnosis, determined that was discharged almost immediately upon his return the following Howard could not return to work. May. Howard filed a complaint of discrimination with MSHA, “There is no suggestion that Howard was terminated due to alleging that he was fired for engaging in activity protected by the poor work performance and there was no incident that would Federal Mine Safety and Health Act of 1977 on numerous occa- have justified his termination,” wrote Administrative Law Judge sions beginning in April 2007. Section 105(c)(2) of the Mine Act Margaret A. Miller. “The only difficulty that [the mine operator] states that a miner cannot be discharged, discriminated against or had with Howard was the fact that he continued to make safety interfered with in the exercise of his statutory rights because he complaints and continued to contact MSHA. Finally, not only was m PEOPLE IN THE NEWS Peabody Energy has appointed Charles Meintjes acting president Engineering; Jack Hopwood, director of sales for FLSmidth Krebs; Mel J. Laurila, of the Peabody Americas business unit. Meintjes replaces Richard president of Quality Control, Inc.; and Richard Whitt, president of TriDet A. Navarre, who has retired for personal reasons after a 19-year Laboratories, Inc. successful career with Peabody. Navarre has been president of Peabody Americas since March of this year and has been with the The Pennsylvania Coal Alliance has appointed former state Charles Meintjes company since 1993. Meintjes will be responsible for the compa- Senator John Pippy CEO. The alliance has been formed by the merg- ny’s U.S. operations, a joint venture in Venezuela and business er of the Pennsylvania Coal Association and Families Organized to development opportunities. He also oversees the areas of health and safety; opera- Represent the Coal Economy (FORCE). George Ellis, who served as tional support; sales and marketing; finance and administration; human resources president of the now-defunct Pennsylvania Coal Association, will and the law function. He joined Peabody in 2007, and most recently served as group John Pippy stay on as the president of the Pennsylvania Coal Alliance, and will executive of Midwest and Colorado operations. serve as the association’s primary lobbyist. The Pennsylvania Coal Alliance will remain headquartered at the former Pennsylvania Coal Association Jenny Herner, vice president of marketing administration, Arch offices in Harrisburg. Coal, has been named one of St. Louis’ 2012 Most Influential Business Women by the St. Louis Business Journal. The award Eriez has announced the promotion of Derek Novotny to manag- annually recognizes remarkable women who excel in business er—coal processing. careers and illustrate the breadth of talent and achievement Jenny Herner among St. Louis-area leaders, according to the newspaper. Vice JADCO Manufacturing, Inc. has appointed Matt president of marketing administration since 2010, Herner leads Johnson regional sales manager for Washington and directs development and administration of coal supply, purchase, trading and and Oregon, and Curtis Patrick territory manager Derek Novotny logistics agreements. Her responsibilities also include contract-related compliance, for Alabama, Colorado, Nevada, Utah and Idaho. including export and customs issues. She participates in contract and dispute nego- tiations and oversees improvement of deal-capture information systems and offer- Titan International, Inc. has appointed Paul Hawkins head of Titan to-agreement processes. Herner also directs and provides leadership to Arch Coal’s Paul Hawkins Mining Services. contract administration department. Ventyx, an ABB company, has appointed Jeff Ray The Coal Preparation Society of America (CPSA) has appointed Art Sanda exec- CEO. utive director. The association also elected a new slate of officers and increased its board of directors from six to 11 members at its annual meeting held in con- Atlas Copco CMT USA has appointed Vince junction with the 2012 International Coal Prep Conference and Exhibition. Elected Fontimayor product manager, mining and rock to two-year terms of office were Robert W. Hollis, vice president preparation for Jeff Ray excavation technology. Vince Fontimayor James River Coal Co., as president; R. Hunter Davis, manager of coal preparation for Alliance Coal, LLC, as vice president; and Michael Ferguson, vice president Mine Radio Systems has appointed Chris Luttrell marketing coordinator. Taggart Global, LLC, as treasurer. Barbara Arnold, president of PrepTech, Inc., was re-elected to a two-year term as secretary. Elected to serve on the board of Double Coin Tires and China Manufacturers Alliance, LLC has directors for three year terms were Peter Bethell, senior processing consultant to appointed David Smothers field service engineer. Arch Coal, Inc. and other coal-related companies; Greg DeHart, director of coal preparation for Arch Coal, Inc.; Al Deurbrouck, formerly of the Department of Xylem has appointed Mike Delzingaro vice president and director of Chris Luttrell Energy; Rick Honaker, chair and professor at the University of Kentucky, Mining sales for dewatering solutions.

12 www.coalage.com July 2012 news continued there open hostility against Howard, he was treated differently has produced 1.05 million tons of coal. Annual direct estimated than other miners who had suffered a work-related injury.” economic impact of the Fola complex is $165 million. CONSOL Energy attributed the idling of its Fola operations to CONSOL Energy Idles Fola, Extends Summer Vacation for a combination of market conditions and increasing pressure from Some Longwall Miners the Environmental Protection Agency (EPA), which has resulted CONSOL Energy issued Worker Adjustment and Retraining in both increased costs of surface mining and significant uncer- Notification Act (WARN) Notices of a layoff at its Fola Operations tainty for the company’s power generation customers related to near Bickmore, W.Va. It is expected that the layoffs will impact the continued use of Central Appalachian coal. approximately 318 employees at the Fola complex and will occur “The decision to idle our Fola operations is a difficult one, but in during a 14-day period beginning at 12:01 a.m., August 30, 2012. an effort to manage our inventory and to balance coal production Surface, reclamation, underground and general office staff will be with expected utility demand and shipping schedules, we are faced affected and were officially briefed on the situation. with making adjustments which unfortunately will impact our work- CONSOL Energy expects 2012 production to be reduced by force,” said Nicholas J. DeIuliis, president. “The domestic market for approximately 800,000 tons. To date in 2012, the Fola complex coal remains soft due to weak economic growth and activity. The

DATELINE WASHINGTON Blaming the Victim

BY LUKE POPOVICH “Fast and furious” is a name already owned by tim. Pointing reporters to low natural gas prices, EPA Administrator the Justice Department but it could equally apply Lisa Jackson said coal’s problems aren’t the EPA’s fault. It’s the to the barrage of slings and arrows launched at economy, stupid. the coal industry this summer. In a damaging But one week after her mea culpa, the Department of Energy’s own fusillade that was not entirely unexpected, the forecasters specifically blamed the EPA’s rules for raising their official administration, the Senate, and finally a federal estimate of expected coal plant retirements from 33 to 49 GW. appeals court, all made coal’s climb out of its But let’s not feel sorry for ourselves. Think of the tough decision doldrums a little steeper. Administrator Jackson had to make. “You can’t imagine how tough In quick succession, we faced the close but disappointing defeat that decision was,” said her Region 1 regulator Curt Spalding. “You of the senate resolution to overhaul the EPA’s destructive utility got to remember if you go to West Virginia, Pennsylvania and all MACT rule. This is the regulation the EPA admits will have little real those places, you have coal communities who depend on coal,” he impact on reducing mercury emissions but energy experts agree will said. have major impacts on coal based capacity. Then just days later, a Yes, you do. So if you live in “all those places” that rely on coal, federal appeals court unanimously upheld the EPA’s authority to cut shut up, stop whining and have some sympathy for Washington reg- greenhouse gas emissions from coal-based power plants by forcing ulators! And all this was just a week before the news that U.S. man- them to become gas plants. ufacturing output fell to the lowest level in three years and average Insult was soon added to injury. West Virginia Senator Jay weekly wages also declined. Rockefeller explained his support for the Utility MACT and the result- Well, any tank half empty is a tank half full. If these events have ing job losses to his state by blaming the industry for its woes, call- all damaged coal’s prospects, they have also made our choices ing it “backward looking” for resisting clean coal technologies. But clearer. as NMA’s CEO Hal Quinn said, because the EPA’s regulation requires Seldom have the lines been more sharply drawn between the a technology standard that is impossible for any coal plant to meet, interests of coal communities and their antagonists in Washington. the advanced coal technologies the Senator says are vital have less In this country of 8.2% joblessness, elections decide who enjoys the chance now of being developed. “The bottom line is that the EPA’s consent of the governed. mercury rule was not designed to improve coal plant performance, Pundits are mocked for declaring every election “the most impor- but simply to force the retirement of as many existing coal plants as tant.” For the coal industry, this summer’s events may have justified possible and to preclude the building of new ones with the best that claim for this fall’s election. available technology,” said Quinn. The blame game actually got worse. The author of the mercury Popovich is a spokesperson for the National Mining Association, the “ rule, and the greenhouse gas rule that followed, also blamed the vic- industry’s trade group based in Washington, D.C.

Seldom have the lines been more sharply drawn between the interests of coal communities and their antagonists in Washington. “14 www.coalage.com July 2012 news continued

warm winter resulted in the growth of our utility customers’ stock- CALENDAR OF EVENTS piles and their inability to accept committed coal shipments. Additionally, the escalating costs and uncertainty generated by July 31 - August 2, 2012 31st International Conference on Ground Control in Mining— recently advanced EPA regulations and interpretations have created will be held at the Lakeview Golf & Spa Resort in Morgantown, W.Va. Contact: Karen a challenging business climate for the entire coal industry.” Centofanti (Tel: 304-293-3901; Email: [email protected]) or Karla In the interim period between today and when the layoff takes Vaughan (Tel: 304-293-3886; Email: [email protected]); Web: icgcm.con- effect, underground operations will continue, however, Fola surface ferenceacademy.com. employees will be reassigned from mining to reclamation work. The August 13-15, 2012 Bluefield Coal Symposium—will be held in Bluefield, W.Va. con- only coal to be mined on the surface will be coal incidental to recla- tact: the Great Bluefield Chamber of Commerce (Tel: 304-327-7184; Fax: 304- mation. Following the initial 60-day period, mining will be idled at the 325-3085; Email: [email protected]; Web: www.bluefieldchamber.com). underground operations. Reclamation will begin in areas not neces- August 21-23, 2012 MSHA’s Alternative Case Resolution Initiative: presented by sary to future operations and an undetermined number of employees Catamount Consulting and Patton Boggs LLP—will be held in Denver, Colo. Contact: will be retained to assist in those efforts. Catamount Consulting LLC (Tel: 518-623-2352; Fax: 518-623-3658; Web: www.cata- In related news, the company announced it will extend the annual mountconsultingllc.com). miners’ vacation period at its Blacksville No. 2 and Robinson Run August 22-23, 2012 2nd Underground Coal Gasification Network Workshop—will be longwall mines in Northern West Virginia. The company estimates held in Banff, Alberta, Canada. Contact: Debo Adams, IEA Clean Coal Center (Tel: 44 that this action will result in 300,000 tons of deferred production. (0)20 8246 5268; Email: [email protected]; Web: www.UCG.coalconfer- The Blacksville No. 2 mine vacation period will be extended ences.org). for two weeks. CONSOL Energy will conduct two belt rehabilita- September 5-6, 2012 MEMSA Annual Technical Symposium—will be held in Clearwater, tion projects during that time. The Robinson Run extension will Fla. Contact: Mining Electrical Maintenance Association (Web: www.miningelectri- be one week and during that time the company will be working to cal.org). maintain the mine in ready state. To date in 2012, the Blacksville No. 2 mine has produced 1.27 million tons of coal using a single September 11-12, 2012 3rd Coaltrans Colombia—will be held at the Bogota Plaza longwall and three continuous mining units. The Robinson Run Summit Hotel, Bogota, Colombia. Contact: Coaltrans Conferences Ltd. (Email: coal- [email protected]; Web: www.coaltrans.com/Colombia). mine has produced 2.4 million tons. September 12-13, 2012 Water Management for Mining—will be held at the Denver Arch Coal Responds to Market Downturn Marriott Tech Center in Denver, Colo. Contact: Infocast (Tel: 818-888-4444; Fax: 818- Arch Coal announced plans to idle several operations and to 888-4440; Email: [email protected]; Web: www.infocastinc.com/mining). reduce production at other mining complexes in Appalachia due September 20-21, 2012 Platts 35th Annual Coal Marketing Days Conference—will to the unprecedented downturn in demand for coal-based elec- be held in Pittsburgh, Pa. Contact: Erica Giardina (Tel: 781-430-2115; Email: eri- tricity. These actions, along with other recent changes in [email protected]; Web: www.events.platts.com). Appalachia, will result in a total workforce reduction of approxi- September 24-26, 2012 MINExpo—will be held at the Las Vegas Convention Center mately 750 full-time employee positions. in Las Vegas, Nev. Contact: Hall-Erickson Inc. (Tel: 866-717-6463; Email: minex- “We deeply value our people, and the decision to reduce per- [email protected]; Web: www.minexpo.com). sonnel was made only after exhaustively reviewing other options October 16-18, 2012 Coal Handling & Storage 2012—will be held at the Union Station and exploring opportunities to avoid this measure,” said John W. Marriott, St. Louis, Mo. Contact: Tanna Holzer (Tel: 303-283-0640; Email: tholz- Eaves, president and CEO, Arch Coal. “We sincerely regret the [email protected]; Web: www.mining-media.com). impact this announcement will have on our employees and their families as well as on the local communities where we operate. November 3-6, 2012 China Mining 2012 Conference and Exhibition—will be held at This decision was difficult but necessary to weather the current the Tianjin Meijiang Convention Center in Tianjin, China. Contact: Beijing Sino-Confex downturn and to position the company for long-term success.” International Conference and Exhibition ((Tel: 86 10 64466855; Fax: 86 10 58857006; Email: [email protected]; Web: www.china-mining.org/en). Arch’s subsidiaries will close three higher-cost thermal mining complexes and associated preparation plants, temporarily idle November 14-16, 2012 Western Mining Electrical Association Bi-annual Meeting— Hazard’s Flint Ridge complex and curtail production at other will be held at El Tropicano Hotel in San Antonio, Texas. Contact: WMEA (Web: operations in Kentucky, Virginia and West Virginia. The mine www.wmea.net). locations affected by the announced closings are the East January 15-17, 2013 MSHA’s Alternative Case Resolution Initiative: presented by Kentucky, Eastern and Knott County complexes. Catamount Consulting and Patton Boggs LLP—will be held in Green Bay, Wis. Contact: These actions will reduce Arch’s thermal coal production by Catamount Consulting LLC (Tel: 518-623-2352; Fax: 518-623-3658; Web: www.cata- more than 3 million tons annually. However, Arch continues to mountconsultingllc.com). expect thermal coal sales volume in the range of 128 million to February 24-27, 2013 142nd SME Annual Meeting and Exhibit and CMA 115th National 134 million tons for 2012. The company also plans to realize sav- Western Mining Conference—will be held in Denver, Colo. Contact: Society for Mining, ings on future capital spending due to the idling of several opera- Metallurgy & Exploration (Tel: 303-948-4200; Email: [email protected]; Web: tions and the redeployment of equipment into other active www.smenet.org/meetings). operations. June 11-13, 2013 Longwall USA Exhibition & Conference—will be held at the David “Current market pressures and a challenging regulatory envi- L. Lawerence Convention Center in Pittsburgh, Pa. Contact: Tanna Holzer (Tel: 303- ronment have pushed coal consumption in the United States to a 283-0640; Email: [email protected]; Web: www.mining-media.com). 20-year low,” said Eaves. “In response, we had previously stream- lined capital spending, idled equipment and reduced shift work.

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We now are taking further steps to enhance our competitive cost Rochelle mine (NARM) in the Southern Powder River Basin of position in Appalachia, while increasingly shifting our portfolio in Wyoming. The company submitted a bid of $1.10 per mineable the region toward higher-margin metallurgical coal operations. ton for control of the North Porcupine reserve area to the Bureau Despite the operational changes announced, we are still able to of Land Management, which awarded the lease following a sealed serve customers here and abroad with the high level of quality bid auction process. they have come to expect from Arch.” Peabody has successfully leased more than 1.1 billion tons of Eaves reiterated that a strategic portfolio review is ongoing reserves adjacent to its North Antelope Rochelle mine in recent and may result in the future divestiture of some of Arch’s noncore months, and the company controls 4 billion tons of coal reserves assets or reserves. “The continued aggressive steps we’re taking to in the region. Peabody is the market leader in the Powder River optimize our portfolio will allow us to better manage through the Basin as the largest producer and reserve holder. NARM shipped current business cycle and to prosper in the inevitable market 109 million tons in 2011. rebound,” said Eaves. MSHA Turns its Attention to Ribs Again Peabody Energy Leases Additional Reserves for NARM The Mine Safety and Health Administration (MSHA) once again Peabody Energy announced the lease of 721 million tons of will focus its annual mine roof control program on efforts to ultralow sulfur coal reserves adjacent to its North Antelope improve mine rib control during the 2012 Preventive Roof Rib

% 2012 AWARDS

Arch Coal’s Dugout Canyon & Castle Valley Prep Plant Receive Three Commission congratulated the Jewett mine on its achievement and recog- Top Safety Awards nized Texas Westmoreland for its innovative techniques in stream channel Arch Coal’s Canyon Fuel Co. subsidiary announced that its Dugout Canyon restoration, which have resulted in reduced flooding, increased stream stor- mine and Castle Valley preparation plant have received three major coal age, decreased velocities, and heightened infiltration. industry safety awards. “Westmoreland takes reclamation seriously at all of its operations and The Dugout Canyon mine received the Rocky Mountain Coal Mining is committed to the highest reclamation standards. Westmoreland takes Institute’s (RMCMI) 2012 Safety Award among large underground mines at reclamation seriously at all of its operations and is committed to the highest the institute’s 100th annual meeting. To qualify for the eight-state award reclamation standards,” said Bob King, president and COO, Westmoreland. mines must have produced substantial coal volumes without a reportable “We are proud to have been recognized for our stream reclamation efforts at safety incident during 2011. Mines then were compared using total incident the Jewett mine.” rate data as reported to MSHA for the calendar year. On February 2, 2012, the Jewett mine also achieved an important mile- “Dugout Canyon’s zero total incident rate puts them at the head of the stone with regard to its continued commitment to environmental excellence industry,” said Judy Colgan, RMCMI executive director. “The mine’s contin- and stewardship. February 2 marked three years without the Railroad ued safety performance is truly remarkable and deserves this recognition.” Commission of Texas, the Office of Surface Mining or the Texas Commission “This is a significant award that recognizes the professionalism and on Environmental Quality issuing the mine a Notice of Violation. dedication of all Dugout Canyon mine employees,” said Gene DiClaudio, president, Arch Western Bituminous Group. “Safety is foremost at every one Arch Coal’s Vindex Energy Earns Third State Maryland Excellence of our operations.” in Reforestation Award In addition, the Dugout Canyon mine also has been named 2011 Safe Arch Coal announced that Vindex Energy Corp. has received the 2011 Operator of the Year among underground coal mines and the Castle Valley Maryland State Excellence in Reforestation Award from the Appalachian preparation plant has been named 2011 Safe Coal Processing Facility by Regional Reforestation Initiative (ARRI). The award recognizes “exemplary the Utah State Labor Commission and Office of Coal Mine Safety (OCMS). performance using the Forestry Reclamation Approach” at Vindex Energy’s “Your safety record of zero incidents for the year 2011 is a great Carlos mine in Allegany County, near Frostburg. achievement in the coal industry and reflects on your company’s fine Mine Superintendent Rusty Bush accepted the award on behalf of the safety programs and training,” said David Houghton, director of Utah company. This marks the third year Vindex has been selected for this honor; Coal Mine Safety. “The men and women who work at Dugout have shown the company also earned Maryland State Excellence in Reforestation awards a great commitment to the culture of safety, and these awards reflect in 2008 and 2007. Vindex, which is an operating subsidiary of Arch Coal, highly on their personal commitment. Congratulations to everyone at also earned the Maryland Land Reclamation Committee’s 2009 Reclamation Dugout. Thank you for being a leader in mine safety in Utah and for pro- Award for outstanding mine-reclamation accomplishments. viding the men and women who work in the mining industry a safe and “We’re proud to be a proven leader in mine reclamation,” said Mike productive workplace.” Moore, general manager, Vindex. “Vindex pioneered the Forestry Reclamation Approach in 2007, becoming the first mining company to uti- Westmoreland’s Jewett Mine Wins Reclamation Award lize the reclamation practice in Maryland and setting the standard for refor- Westmoreland Coal Co. announced that Texas Westmoreland Coal Co.’s estation on mined lands throughout the state.” Jewett mine was presented with the 2012 Railroad Commission of Texas The ARRI coalition was formed in 2004 and is supported by the U.S. Coal Mining Reclamation Award for its “Jewett Mine Stream Restoration Department of the Interior’s Office of Surface Mining. The Maryland Initiative” project. John Caudle, director of the Surface Mining and Department of the Environment adopted the Forestry Reclamation Approach Reclamation Division for the Railroad Commission, presented the award to in 2005. The approach expedites the establishment of forest habitat and Texas Westmoreland June 12, 2012, in Austin, Texas. The Railroad encourages planting of high-value hardwood trees.

18 www.coalage.com July 2012

news continued ✍ Outreach Program (PROP). For the second LETTERS TO THE EDITOR consecutive year, in 2011, fatal rib roll Dear Editor: What About Us?—The Small Business Owners accidents in underground coal mines out- Every week we hear more disturbing news about the coal industry. It seems the coal industry is caught between the numbered more typical fatal roof fall acci- proverbial rock and a hard spot. It appears if the EPA had its way; coal mining would cease to exist. The sanctions dents. Most recently, on June 25, a coal and restrictions imparted on us create undue hardships and is borderline unreasonable. I’m sure I speak for a lot of miner in eastern Kentucky suffered fatal small mine operators and business owners when I say we love our country and our land. We take great pride in fol- injuries when he was crushed by a rib roll. lowing the rules and regulations. We genuinely want to do the right thing. We agree the land reclamation acts are Roof control in underground mines necessary to ensure the environment remains intact and continues to sustain life. We get it… involves securing the top as well as the sides As small business operators we invest millions of dollars in technology and equipment. We hire highly skilled of travel ways, or walls, which are referred to people to meet the EPA requirements, safety and other governmental regulations. We take pride in our product, we as “ribs.” The number of injuries resulting pay our taxes and we provide tens of thousands of jobs that help stimulate the economy. Clearly common sense has from roof and rib failures increased from 439 taken a back seat to bureaucrats who sit behind desks and think they know what is best for our industry. Surely they in 2010 to 484 in 2011. In 2010, the number of must realize that coal provides more than just energy. The byproducts of coal are in our everyday life. fatal rib failure accidents (in which the walls Since its discovery in 1701, the world, (not just the USA) has prospered and thrived on the by-products of coal. in the underground mine crumble from pres- Imagine what life would be like without it? Do we want to revert back to driving on gravel highways? Coal produces sure) exceeded the number of typical roof fall the road tar used in highways. How about the living in a colorless world? Aniline is a byproduct of coal tar which is accidents (where the roof falls from the top of used in pigments and dyes. It is used in a variety of resins, printing inks and paper processing. And the list goes on the mine) for the first time ever, by a margin and on… of one. In 2011, fatal rib failure accidents Simply put, coal cannot be done away with. It is engrained in our everyday life and will be for generations to again outnumbered fatal roof fall accidents come. Compromises must be made with the federal government and the EPA. Common sense and logical thinking by one. must be part of the decision making process. I don’t think the federal government is prepared to offer bail out pack- “Rib failures pose as much of a danger ages to the small business owners who provide jobs to the local economy and product that is offered globally. as the more typical roof fall accidents, and I ask again…What About Us? this tragic death was a telling example,” Steven Chambers, Director of Safety, Mountainside Coal, Inc., said Joseph A. Main, assistant secretary of and Ralph Whitley, COO, Surface Mining Technologies, LLC labor for mine safety and health. “We are concerned that there was only a slight decrease in fatalities from these accidents Dear Editor: between 2010 and 2011, and we are even In reference to subject issue of the Coal Age, I would like to point out an incon- more concerned about the increase last sistency. On page 1, the photo on the cover is described as being Westshore Terminals. If my memory serves correct, I think this may be Neptune Terminals. year in the number of miners who were injured in these accidents. Clearly, we Stan Houser must reinvigorate our efforts to educate Minerals Business Development mine operators and miners about ways to Intertek Commodities alleviate hazards.” Because improper examinations of roof Stan is correct. The March 2012 cover photo is Neptune Terminals. and rib conditions often lead to deadly roof and rib failure accidents that can be Dear Editor: avoided, MSHA will distribute specific I just wanted to let you know that I love Coal Age. Having just read your recent article titled TransAlta Abandons information to underground mine opera- Canada’s Largest Carbon Capture Project, I felt the need to share. tors and miners about these dangers, as While TransAlta has abandoned the idea of carbon capture, right next door in Saskatchewan we are going full well as methods to thoroughly check and speed ahead with our own 1.1 million ton carbon capture project. Hitachi (who recently announced a $1 billion part- address hazardous roof and rib conditions. nership) and several other private sector companies are actively participating, construction is well under way and we During the annual roof control initiative, expect to be up and running by 2014. www.saskpowercarboncapture.com/projects/boundary_dam MSHA inspectors also will distribute informa- More recently, Canada’s Environment Minister Peter Kent and Saskatchewan’s Minister of Environment Ken tional posters that identify rib control prob- Cheveldayoff, announced that they are working toward an equivalency agreement on coal-fired electricity greenhouse lems and list several possible solutions. The gas regulations. Both governments wish to avoid duplication of effort to control greenhouse gas emissions, and are materials are available at: www.msha.gov. working together to ensure that industry does not face two sets of regulations. An equivalency agreement would see the federal regulations stand down in favor of a provincial regulation, as long as the provincial regulation achieves Cloud Peak Acquires CONSOL Energy’s an equivalent or better environmental outcome. http://www.gov.sk.ca/news?newsId=c8ebb28d-362e-4ec4-8878- PRB Assets 59a56d92c566 Cloud Peak Energy recently announced it So while there is bad news on the Alberta front, CO capture is proceeding here in Saskatchewan. Their loss, our gain. 2 acquired the Youngs Creek Mining Co., joint venture and other related coal and surface Craig Johnston assets from CONSOL Energy and Chevron Economic Development Officer for $300 million. Of this purchase price, Estevan Chamber of Commerce $195 million is allocated to the lease of approximately 450 million tons of in-place

20 www.coalage.com July 2012 news continued coal and $105 million to the purchase and lease of 38,800 acres of to be done to provide miners with a voice in the workplace, and land. The coal and land are well suited to support potential that MSHA needed to more aggressively use its tools under the increased exports through the Pacific Northwest. Youngs Creek is a Mine Act to enforce the law. We began taking actions immediately permitted but undeveloped surface mine project in the Northern after the disaster, and we are still continuing to implement a Powder River Basin located 13 miles north of Sheridan, Wyo., and number of initiatives to make mines safer.” just south of Cloud Peak Energy’s Spring Creek mine. Three months ago, the agency released the results of its internal “The significant coal and surface assets we acquired position review into actions leading up to and immediately following the UBB Cloud Peak Energy well for future growth in our Asian exports as explosion, including recommendations for improving MSHA’s effec- additional terminal capacity becomes available. The location of tiveness. “We are changing how we do business at MSHA,” said Main. the coal and surface lands close to the Spring Creek mine and its To that end, the agency has undertaken a comprehensive review of its rail spur should reduce development costs and allow future oper- policy directive system, as well as a complete overhaul of its coal mine ating synergies to be realized. The quality of the coal is similar to inspectors’ handbook to make it clear and concise. MSHA also is that of our Spring Creek mine and offers lower sodium levels to increasing staff training and addressing shortcomings repeatedly further meet the needs of our customers,” said Colin Marshall, identified in several past agency internal reviews. president and CEO of Cloud Peak Energy. The enhanced enforcement strategies MSHA is implementing Of the approximately 450 million tons of in-place coal, the are working, according to Main. During the more than two-year- undeveloped Youngs Creek mine permits cover 291 million recov- old impact inspection program, which targets mines with chronic erable tons of low sulfur, high Btu subbituminous coal. Of this compliance issues, MSHA has conducted 443 inspections, result- permitted coal, 267 million tons benefit from a royalty rate of 8% ing in 7,948 citations, 785 orders and 29 safeguards. payable to CONSOL and Chevron which is below the normal “Overall compliance is improving at these mines,” he said. 12.5% of gross proceeds payable on federal coal. Violations per inspection hour are down 13% after mines received an The 38,800 acres of land includes Youngs Creek surface to the initial impact inspection. The significant and substantial, or S&S, vio- south and extends to the border with Cloud Peak Energy’s Spring lation rate is down 21% and 104(d) withdrawal orders are down 43%. Creek mine to the north. The property also extends onto the Crow The total lost-time injury rate at these mines is down 13%. Indian Reservation to the west and abuts the Decker mine, of “Unfortunately, there are some mine operators that still which Cloud Peak Energy owns 50%, to the east. haven’t gotten the message,” Main said.

Main Says Enforcement Strategies are Working Iron Ore Miners Need Coal-fired Power Despite a number of challenges confronting the mining industry over According to Minnesota Power, three older coal-fired power the past two and a half years, including the worst coal mine disaster in plants the state has recommended closing may be needed to four decades, the actions being taken by the Mine Safety and Health serve Iron Range customers in the northeastern part of the state, Administration (MSHA) are making a positive difference and moving so it wants more time before deciding their fate. mine safety and health in the right direction. That was the central The Minnesota Commerce Department recommended earlier this theme of Assistant Secretary of Labor for Mine Safety and Health year that the Allete subsidiary retire Larkin units 1 and 2 in Hoyt Lakes, Joseph A. Main’s remarks delivered at “Measuring Progress Toward a Minn., and Taconite Harbor unit 3 in Schroeder, Minn., by 2016. Safety Culture of Prevention in Mining,” a recent one-day seminar Unless circumstances change, the agency also wants the utility to sponsored by Penn State’s Miner Training Program near Pittsburgh, Pa. shutter Boswell unit 1 in Cohasset, Minn., by 2020. “Following the April 2010 explosion of the Upper Big Branch But the Duluth-based company, which serves 144,000 cus- mine, one of my most significant challenges was keeping MSHA tomers, is not convinced the baseload plants are ready for the focused on our overall mission and agenda to advance mine safe- scrap heap. For one thing, Minnesota Power said in June, the ty,” said Main. “That tragedy clearly identified that more needed state’s iron ore mines depend heavily on electricity generated by the coal units, and replacing that power may not be cheap or easy. That is why Minnesota Power told the state that a “deeper analysis” is needed on a baseload diversification study it conduct- ed as part of its long-range planning process. That process is expected to culminate in 2013 with the filing of a new integrated resource plan with the state. Over the past six years, Minnesota Power has invested more than $355 million to reduce air emissions such as sulfur dioxide, nitrogen oxides and mercury by more than 70% at Laskin, Taconite Harbor and Boswell. “Taking early action on emissions reductions has put us in a better position to meet federal standards,” said David McMillan, the company’s executive vice president. “We know that environ- mental regulations will increase costs to our customers, and that knowledge has driven us to make the proactive investments we’ve made to date. For now, we believe we’ve taken the best steps we can to keep our energy affordable into the future.”

22 www.coalage.com July 2012 transport tips

China Ship Congestion—How So Many Capesize Ships Got Locked Out of China’s Ports

BY DAVID GAMBREL

Heavy Industries (RSHI) for the construction of 12 400,000-metric ton (mt) ore carriers. The contract, worth $1.6 billion, was the world’s largest single shipbuilding contract by deadweight tonnage. They would be the largest dry-bulk cargo vessels ever built—400 yards long by 72 yards wide. On a good day Bubba Watson couldn’t knock a golf ball from one end to the other! Only three Chinese ports—Dalian, Dongjiakou and Majishan—are capable of handling the mega-ships. One can only assume Vale had the approval of Chinese officials before ordering 36 vessels at $150 million each. The 380,000 mt Berge Everest delivered a load to Dalian in December 2011, the only time one of the vessels has taken cargo to a Chinese port. Vale rolled out earlier this year the Vale Brazil, the world’s largest dry-bulk vessel, a ship designed to reduce the cost of shipping iron Figure 1: Tugs move the damaged Vale Beijing, a 361-m-long vessel loaded with ore—the main steel ingredient to China, the company’s largest 384,300 metric tons of iron ore, at Ponta da Madeira Port near the northern Brazilian market. On its maiden voyage however, the China-bound vessel city of Sao Luis, December 6, 2011. (Photo: Biaman Prado/AFP/Getty Images) was diverted to Italy for commercial reasons and to allow time to finalize talks for future port deals, Vale said. Vale will have China There was a great deal of excitement the first week in June when it and South Korea build 18 new giant bulk carriers because domestic was reported that more than 30 Panamax and Capesize ships were Brazilian shipyards do not have capacity to take the order. floating off the coast of China with unsold cargoes. For the coal and No one can accuse Vale of acting maliciously toward Chinese ore brokers and others that had not been paid, it was panic time. ship builders because the $1.6 billion contract would employ There would be sleepless nights and lunchless days as they tried to thousands of Chinese workers. In fact, most shipowners were so sell their cargoes to the Chinese, Koreans, Indians, Italians, or any- thrilled with the high daily rates they began ordering ships of the one else that would take them. It is unclear whether this was a case super Capesize class. Their attitude would change with time, of southeastern Chinese utilities arbitraging imports with domestic especially those involved in the Brazilian iron ore trade. production from northern China, if it was a symptom of the contin- Similarly, no one can accuse Vale of acting maliciously toward uing battle between Chinese shipowners and Vale (Companhia Vale Chinese ship owners. How was Vale to know The China do Rio Doce), or some of each. Coal was important, but iron ore Shipowner’s Association’s (CSA) two largest ship owners, COSCO shipping was wagging the dog. and HOSCO, ordered new ships of a slightly smaller size (approx- The only thing brokers had in their favor, if one can call it that, imately 300,000 mt)? How were they to know that COSCO alone was that daily hires for Capesize ships were running at record lows would in 2009-11 take delivery of 17 of the very large Capesize (See Figure 2), low enough that some shipping companies (Mitsui vessels, 10 of which were in the 300,000 mt class? HOSCO took OSK) were already putting some ships in lay-up. Compared to iron five ships in the 300,000 mt class. These 22 ships alone would ore cargoes that were worth $20 million, daily ship hire was relative- increase available tonnage by more than 5 million mt, but other ly small. The real problem was that they could not reload ships with ship owning companies were jumping on the band wagon and more expensive cargoes unless they were unloaded first. They knew ordering new ships. After all, who wouldn’t want more of the a loaded ship would take 45 days to make the trip from Brazil to $180,000 daily rates? However, all of the new ships produced a China, so every single ship was limited in its annual capacity. glut of tonnage that drove daily rates down. At the same time there was also a lockout of iron ore ships tak- There was an immediate reaction to the first Valemax vessel to ing place. The lockout grew out of a Vale order for new mega- appear for unloading: it was rejected. Imagine that. What would ships to carry Brazilian iron ore to China, an order which was normally be expected as a celebratory occasion was instead intended to help Vale compete with Australian iron ore producers turned into a marine disaster. After taking delivery of two more of BHP and Rio Tinto. The ship chartering people at Vale were the Valemax vessels, Vale cancelled its orders for more vessels. It already chafing with Capesize daily rates that were running more would be difficult to deny that CSA’s public statement was influ- than $100,000/day, but when they jumped to $180,000/day in late enced by their most powerful member, COSCO. Yet when Vale 2007, it was time to do something about controlling daily rates. It refused to use any COSCO ships for iron ore loading, COSCO act- was time to place their first order for the first 12 of the 400,000 mt ed like they did not understand. Valemax ships. COSCO, the largest shipowner and arguably the most influen- The first Valemax vessels were ordered August 3, 2008, when Vale tial member of the CSA, was already feeling the pinch of record- signed a contract with Chinese shipbuilder Jiangsu Rongsheng low daily charter rates, and was looking for a way to avoid the

24 www.coalage.com July 2012 transport tips continued threat of losing Brazilian iron ore business to Vale’s new mega- ships. CSA issued the following statement and put it on their web- site:

China Shipowner’s Association’s Comment and View on Vale’s Construction of Transshipment Hub and Distribution Center in Philippines and Malaysia to Transport Iron Ore Imported by China, 2011-12-06

Background: In September, Vale and Philippine Subic Bay Metropolitan Authority (SBMA) signed a memorandum of agreement to build an iron ore transshipment hub in Subic Bay. By using a purposely-designed floating ter- minal to be located in Subic Bay, Vale can carry out an iron ore transship- ment operation from its Valemax mother vessel to smaller daughter vessels or feeders with main destinations being mainland China, South Korea, Japan and Taiwan area. Vale is also exploring the feasibility of constructing an iron ore offshore storage facility.

What impact will Vale’s serial moves have on the iron ore shipping mar- ket? Reporters therefore sought opinions from Mr. Shouguo Zhang,vice exec- utive chairman of China Shipowner’s Association.

Reporter: It is reported that Vale has been engaged in constructing trans- shipment hub and distribution center in Philippines and Malaysia to trans- port iron ore imported by China. What’s China Shipowner’s Association’s view on that?

Mr. Shouguo Zhang: First of all, Vale bases its moves of constructing trans- shipment hub and distribution center on its owned fleet but aims at the iron ore which is imported by China. This violates the principle of optimizing resource deployment. At present, the existing fleet in the market is complete- ly able to satisfy the iron ore shipping demand. There is no necessity to waste resource to construct transshipment hub and distribution center. The addi- tional transshipment step only leads to the waste of resource and decrease of efficiency. Second, Vale is an iron ore producing corporation that obviously lacks experience in ship safety management, ship pollution prevention, and ship operation and management. It is difficult for them to run ships as good as professional shipping companies and thus tend to arouse safety and envi- ronment risks. Third, Vale holds the cargo to itself and now intends to control shipping tonnage. It is a matter of monopoly and unfair competition which not only harms the shipping interest of mainland China but also that of South Korea, Japan and Taiwan area. Fourth, the current shipping market is in its downturn. Wherever Vale builds the distribution center, its cost will not be lowered. Their gains cannot make up for their losses.

We think Vale’s serial moves might cause itself heavier burdens, bigger loss- es and also concerns and vigilance from other Asian iron ore importing coun- tries and areas. Brazil Vale’s current task of top priority is to immediately stop its ambitious fleet expansion plan especially to cease the construction of 400,000 dwt VLOC and other types of bulkers. Only by doing so they can minimize their losses.”

The CSA is enormously influential in the formation and execution of Chinese maritime policy, and were anxious to do whatever was necessary to help the cause of Chinese shipowners. Iron ore ves- sels loaded from Valemax ships in Subic Bay found it difficult if not impossible to get port entry permits in China. When COSCO

July 2012 www.coalage.com 25 transport tips continued

know how many coal vessels are caught up in the current iron ore flap. The parties have much to learn. For Vale, the lesson should be to avoid ordering large numbers of vessels before receiving systems are proven. For COSCO, the les- son should be that Vale cannot possibly be responsible for plummeting daily rates in the years following record daily rates, and should not be blamed for all the ills that have befallen COSCO since the Chinese started buying Brazilian iron ore. Both companies are guilty of jumping on the ship- ordering band wagon when daily rates were at or approaching an all-time high. They are equally culpa- ble in creating the glut of Capesize tonnage that now Figure 2: Daily Rates for Capesize, Panamax and Handy Size Vessels, September 2007-June operates to drive rates to unbearable lows. Showing the 2012. Between September 2007 and September 2008 daily rates reached record heights. best of intentions, Vale still cannot do anything right in (Source: Shipping Tribune.com) the eyes of CSA and COSCO. They spent millions to build the Subic Bay transshipment facility, but were reported widening losses in its first quarter 2012 financial report, openly criticized by CSA for doing so. If they do everything CSA Chinese sympathy for their cause increased. wants them to do, will they then be acceptable? On the other Having only three ports capable of handling the monstrous hand, if they do everything CSA wants them to, will CSA then be Valemaxes, which require 75 ft water depth, one can understand managing Vale? Perhaps it is time for the Dalian Arbitration why the Chinese would be concerned about ship safety. While the Court to crank up. timing of it seems suspect, one of the first Valemax ships had an accident in the loading port that would call into question the Coal Connection safety of the Valemax vessels. The Vale Beijing (See Figure 1) When the coal exporters of the world discovered in 2009 that the sprung a leak while loading, and had to be towed away from the Chinese were suddenly importing more coal than the base level loading dock. It could have disrupted the daily loading of a huge of metallurgical coal they had been buying from Australia, they amount of iron ore had it sunk at the dock. were pleasantly shocked. Now many are acting like they think it After the incident, the CSA questioned the safety of the will last forever, trying to build terminals on the U.S. West Coast. 400,000-mt ore carriers commissioned by Vale. CSA was particu- The Chinese don’t need coal—they are swimming in it (See larly concerned about the ability of the newly built ships to with- Market Watch, p. 68). In 2009 alone, they produced 2.9 billion mt stand various sea conditions and the pollution resulting from fuel from a reserve that is 180 billion mt or more. oil leaks in case of structural damage—each Valemax ship can So why did they start buying import coals? They recognized carry around 10,000 mt of fuel oil. In January 2012, China official- they could buy Australian and Indonesian steam coals cheaper at ly banned the vessels from Chinese ports. the port of need (e.g., Guangzhou, southeastern China) than they Vale Beijing delayed the loading of only 750,000 mt of iron ore. could buy Chinese produced coals, which were produced in However, it could have been worse. On November 11, 1994, Trade northwestern China provinces and transported from northeast- Daring, a 145,000 dwt ore-bulk-oil carrier, broke in two at the ern Chinese ports. Because inland transportation is usually inad- same location due to incorrect loading. It blocked the deep water equate and too expensive, most China-produced coal is railed to pier of Ponta da Madeira for more than six weeks before the the coast, loaded on 40,000-50,000 dwt vessels, and shipped to wreck was removed and scuttled offshore. It could happen in the industrialized south to compete with imported coals. Quite China with these huge vessels, CSA reasoned. simply, the Chinese are arbitraging their own cabotaged coals On July 5, 2011, China Transport Construction Group com- with imported coals. pleted work to expand Dalian’s port capacity, making it possible Export terminals used for China-produced coals include for ships as big as Vale’s giant bulk carriers to access a key port in Qinhuangdao, Huanghua, Rizhao, Tianjin, Qingdao, Lianyungang top iron ore importer, China. “(China Transport Construction and Caofeidian. If a coal seller sees a report of port congestion at Group) recently completed an upgrading project to expand these ports, chances are very good his vessel will not be involved. Dalian’s port capacity to 400,000 mt from 300,000 mt,” China’s Usually, these will be the smaller vessels waiting to be loaded with state-owned Assets Supervision and Administration Commission Chinese coals. of the State Council said in a statement dated July 1. “This is the Import terminals used for arbitrage include Guangdong, second port in China that can handle 400,000 mt class ore dry Zhejiang, Shanghai, Ningbo, Xiamen, Guangzhou, Shantou and bulk carriers.” Beihai ports. If a coal seller sees a report of port congestion at This issue between Vale and certain Chinese interests began these ports, chances are good his vessel could be involved, so he over iron deliveries from Brazil to China. The question is, “How may need to investigate further. These will usually be Panamax are foreign coal producers affected, if at all?” The answer, quite and Capesize vessels waiting to unload. simply, is the vessels they use. If a vessel owner has a supply of Capesize vessels he can place in iron ore service for $10,000/day Dave Gambrel is a coal transportation consultant and writer. He is or coal service for $25,000/day, where is he going to place those the former director of transportation for Peabody Energy, and was vessels? The vessels are equally usable in either service, or for that in charge of its chartering program. He may be reached at matter, for hauling grain. Without a detailed analysis we do not [email protected].

26 www.coalage.com July 2012

minexpo preview

MINExpo 2012 Preview Las Vegas hosts the world’s largest exposition for mining and mineral processing

BY STEVE FISCOR AND GINA TVERDAK-SLATTERY

Delegates inspect a set of shields at MINExpo INTERNATIONAL 2008.

Every four years, the U.S. National Mining Hall, full service registration will be avail- show directory is currently being devel- Association (NMA) holds MINExpo INTER- able, Phelleps explained. “We also will have oped, Phelleps explained, which will go live NATIONAL, the world’s largest exposition a business center for the South Hall with at the end of July. The directory is search- for the mining and mineral processing sec- meeting rooms that can be reserved in 30 able by name and equipment, and will tors. The event will take place September minute increments,” Phelleps said. “We are remain active for a year after the show. 24-26, 2012, at the Las Vegas Convention excited that a large number of universities “During 2008, we had a similar online Center. As far as exhibit space, the show is have decided to exhibit at MINExpo, and directory, but it was fairly basic,” Phelleps currently sold out. More than 1,800 compa- we have grouped them together in an area said. “The 2012 online directory will be nies will display equipment and discuss just outside the South Hall. The North Hall much more extensive.” services on more than 850,000 sq ft of exhi- will remain the same, with full registration A MINExpo 2012 app will be available in bition space; in 2008, 1,224 exhibitors occu- there. The International Business Center mid-August. The app will include the pied 600,000 sq ft. will be located on the second floor of the online directory along with the schedule for To accommodate all of the new compa- North Hall.” the technical program. One of the unique nies pursuing the mining business, the The NMA will provide a shuttle service features of the app will be its “way-finding NMA contracted for more space in the from the MINExpo hotels to the North and capability” from one hall to another. South Hall. “This is the first time we have South Halls. An intra-exposition shuttle Delegates are encouraged to register in used the South Hall,” said Moya Phelleps, service will also operate at the convention advance on the website (www.MINExpo.com). senior vice president for membership ser- center. Delegates staying at the Las Vegas The pre-registration process has been vices, NMA. “Traditionally, MINExpo took Hotel Hilton, the closest hotel to the con- designed to assist attendees in making place in the North and Central Halls, along vention center, will depart from the east the most of their MINExpo experience. with some outdoor space. Now we have tower and arrive at the North Hall first and For example, during the registration process, South Halls Nos. 3 and 4.” Readers might then the South Hall. Delegates at the North attendees will be asked to participate in recall the Silver Lot in the front of the con- Hall will take the same shuttle from the the new MatchMaker program. Those that do vention center was off-limits because of North Hall to the South Hall. will be prompted to select the equipment construction in 2008. All of that space will The NMA will be using new digital tools and services that interests them the most. be used this year. to help delegates plan and navigate About a week before MINExpo 2012 begins, For people who decide to begin their MINExpo 2012. MINExpo has a Facebook they will receive an email listing all of those MINExpo 2012 experience at the South page and is tweeting on Twitter. An online exhibitors.

30 www.coalage.com July 2012 minexpo preview continued

The NMA was selected to be one of the shows in the Department of Commerce’s International Buyer Program for 2012, and currently 21 different foreign delegations are being formed for MINExpo 2012. The contact information is available on the MINExpo website. “We will be working with those delegations to provide short briefings on the mining activities that take place in their countries to make a needs assess- ment,” Phelleps said. “Members of each delegation will be available at the show, and the delegation leader information is on the MINExpo website.” The International Buyers Center (IBC) will have a formal printed export directory. The IBC will have meeting rooms available, and U.S. com- mercial services will be available for busi- ness counseling. The MINExpo 2012 technical program takes place during the mornings of Tuesday and Wednesday (September 25 and 26). Experts will deliver 20 presentations on var- ious subjects related to mining and mineral processing. One session will focus on automation, and two sessions will discuss mine safety. The NMA will present the industry’s CORESafety initiative in the technical sessions and at the association’s booth. The technical program in 2008 was a huge success, and 2012 is shaping up to be even better. In an effort to give Coal Age readers an inside advantage, Mining Media contacted several vendors to find out what they are planning for MINExpo 2012. Some of the companies were not prepared to talk about plans in advance, while others are purpose- ly withholding information to make special announcements at the exposition. But, many equipment manufacturers and ser- vice providers did share their plans and the following MINExpo Preview compiles the information gathered as of early July.

Cat Presents Broadest Range of Mining Equipment in the Largest Exhibit No matter what their interests—surface or underground, hard rock or soft rock— MINExpo visitors will find the machines and technology at the Caterpillar (Cat) exhibit to help them mine and move miner- als safely and productively. In the center of Central Hall, Booth 6229, the largest exhibit space at MINExpo, Cat will showcase the broadest line of mining and materials han- dling equipment available—and backed by the most extensive and capable product support team in the worldwide mining industry.

July 2012 www.coalage.com 31 minexpo preview continued

At MINExpo, Cat will reveal a number environment with productivity enhancing “By specializing only on shovels and of innovative mining systems and on-board electronics. haulers, Hitachi is able to focus, without machines. One such machine, never Support equipment on display will compromise, on producing highly-efficient before presented to the mining public, will include the new Cat CT660 vocational truck and productive machinery,” said Ryan offer an unprecedented, efficient means to equipped as a service truck. The CT660, Blades, division manager, Hitachi Mining. step up production loading of ultra-class available only in North America, is the first “The new AC-drive technology advance- haulers. Making best use of size and ener- Cat branded on-highway truck and can be ments are a perfect example of the superior gy storage technology, the new loading fitted with many different bodies to serve quality and performance of this approach. tool promises to lower cost per ton in the needs at hand. Additional support It’s something every mining company will world class mining operations. equipment includes the recently intro- want to see and learn about.” For underground coal, the next gener- duced C175-20 generator set, which pro- In addition to its AC-drive technology ation EL3000 longwall shearer features a duces the greatest output, as much as 4 mw, for rigid-frame trucks, Hitachi will also state-of-the-art communication system of any single high-speed diesel generator showcase updates to its line of mining-class for advanced automation and monitoring. set available on the market. excavators. www.hitachimining.com The Cat longwall system includes person- In addition to the main exhibit in Central nel proximity detection and underground Hall, Caterpillar OEM Solutions will exhibit Joy Global Showcases cameras that can be linked to a surface in the Silver Lot at booth 18162. The new Its Market Breadth monitoring center. 777G WTR is one of the specialized Off- At Joy Global (Booth 6211), P&H and Joy are Surface miners will be pleased to see a Highway Truck chassis that the group offers combining resources to better serve their Cat engine powering the MD6240 rotary in a configuration designed specifically for customers. As a worldwide leader in the blasthole drill. They also will get to kick the water truck applications. OEM Solutions also design, manufacture and field support of tires of the latest edition of the workhorse will offer information about the new Cat equipment for surface and underground 777 truck, the 777G, which meets North water delivery/control system being field mining, Joy Global will demonstrate its sin- American Tier 4 emission standards. The tested now and will be available on the 777G gular focus on mining with innovative 777G also has adjustable fuel saving strate- WTR. www.mining.cat.com products and systems along with life cycle gies, performance improvements and services that make mining operations safer enhanced safety features for sustainable, Hitachi to Showcase New AC-drive and more productive. low cost production. The next generation Technology Advancements Surface and underground mine opera- D11T track-type tractor also features Tier 4 Hitachi will unveil (at Booth 8527) new AC- tions worldwide obtain exceptional pro- emissions compliance as well as the drive technology for haul trucks. The ductivity, availability and reliability from Enhanced Auto Shift system, designed to advancements include Hitachi’s next-gen- their investment in Joy Global equipment conserve fuel by automatically selecting the eration IGBT propulsion technology, which and systems with the help of Joy Global optimal reverse gear and engine speed, will showcase a next-generation rigid- Smart Services remote health monitoring based on load and desired ground speed. frame hauler. technology. Visitors to the Joy Global exhib- The three largest trucks in the Cat line— The truck features advanced propulsion it will be able to see real examples demon- 797F, 795F AC, 793F—will share space with technology that delivers a whole new level strating the power of technology that loading tools, the 994H Extended High Lift of efficiency, vastly enhancing machine transforms data into valuable knowledge, designed to efficiently load 250-short-ton operations for mining professionals every- helping optimize machine and system per- size class trucks and the 6030B FS hydraulic where. In addition, the new technology, formances. front shovel representing the extensive line which also powers Japan’s famous bullet Joy Global will promote the value of its of Cat shovels. The 6030B is the first of the trains, outperforms previous and competi- broad range of productivity-boosting equip- Cat B Series hydraulic shovels and features tive systems through its improved efficien- ment and services for surface and under- a state-of-the-art new cab and operator cy and enhanced dependability. ground mining. Attractions will include a

At the Joy Global booth, delegates will see technology that ranges from the L-2350 wheel loader, electric shovel enhancement, and a Joy 14CM15.

32 www.coalage.com July 2012 minexpo preview continued

Smart Services real-time equipment health Boart Longyear—Booth 23018 and passenger locomotives, and heritage and and performance-management module, a Boart Longyear will display the recently modern streetcars. www.brookvillecorp.com P&H LeTourneau-series L-2350 wheel load- released LS600 sonic rig. With advanced er, a Joy 14CM15 continuous miner, an sonic drill technology featuring innovative Columbia Steel—Booth 6075 innovative new operator cab for P&H drills, and patented designs, the LS600 delivers Columbia Steel will feature innovative a Joy armored face conveyor for a longwall continuous-undisturbed core samples. dragline wear parts, including a full-scale system, and operator training simulators for Product experts will be on-site to highlight model of the new Bantam Dump Block. The both P&H and Joy equipment. Joy will intro- the latest releases in drilling equipment Bantam combines the benefits of less duce several new product developments and tools, including the new 10UMX—a weight with tough, long lasting design. that represent the company’s application of high-performance diamond coring bit with Columbia Steel will also exhibit its updated innovation and technology to continually the freest-cutting matrix available. The TwistLink chain, a weight saving dragline drive down the owner’s Total Cost of 10UMX is part of the award winning product. Columbia Steel is a full service Operation in both surface and underground Ultramatrix (UMX) diamond coring bit facility for design, pattern making and cast- mining operations. family, which includes the SSUMX, O7UMX ing, as well as alloy selection—like the abra- In addition to the products and systems and 09UMX. Boart Longyear also offers sion and impact resistant H-alloys, and on display, a central stage will feature Joy water exploration, environmental sam- high carbide overlays. Stop by the booth Global’s leadership and direct service sup- pling, energy and oil sands exploration ser- and meet Columbia’s engineers and field port, and will serve to introduce new surface vices. www.BoartLongyear.com representatives and find out more about and underground mining systems—includ- the company’s mining wear part solutions, ing a first-of-its-kind generation of loading including complete dragline packages. All equipment. www.joyglobal.com Columbia parts are guaranteed for proper fit, performance and customer satisfaction. Atlas Copco Drilling Solutions— www.columbiasteel.com Booth 2121 The Atlas Copco PV-235 is a crawler mount- ed, hydraulic tophead drive, multi-pass rotary drilling rig that can be configured in many different ways to compliment a wide variety of rotary and DTH drilling opera- tions. It provides blasthole drilling to depths of 240 ft (73.2 m) with a 40 ft tower, and 210 ft (64 m) with the 35 ft tower. There is also a wide choice of low and high pres- Brookville Equipment Corp.— sure compressors, matching electric or Booth 4025 diesel engines, and either a single or two- Brookville Equipment celebrates 94 years of speed rotary head. www.atlascopco.com continuous operation in the U.S. During its tenure, the company has tripled in size and its expanding product line includes some of the most technologically advanced equip- ment used in the rail haulage industry. Brookville custom manufactures rail-mount- ed and rubber-tired haulage equipment for underground coal mining, hard rock and precious metal mining, tunnel construction, industrial switching, and mass transit appli- Elgin Equipment Group—Booth 2637 cations worldwide. The company produces a Elgin Equipment Group (EEG) companies diversified product line consisting of under- serve a wide spectrum of industries. Its prod- ground personnel carriers, scoops, mainte- ucts and services include new and rebuilt nance vehicles, and haulage tractors, freight

34 www.coalage.com July 2012 minexpo preview continued centrifuges; cyclones; vacuum pumps and Like all Godwin Dri-Prime pump models, the er fines and maximized yield. From mine to blowers; mine electrical products and light- HL260M offers fully automatic priming from electric power plant, Gundlach has been ing systems;substations and transformers; dry to 28 ft of suction lift. Depending on loca- serving the coal industry since 1923. electric heaters; rotary breakers; vibrating tion and requirements, it can be customized www.GundlachCrushers.com screens and feeders; profile wire screens; with a diesel engine or electric motor. It offers urethane screens; water intake screens; spe- extensive application flexibility, including Inpro/Seal—Booth 28201 cialized metal fabrication; electrical system handling water, slurries, and liquids with Since inventing the original bearing isola- analysis; repair services; and replacement solids to 2 inches in diameter. This reliability tor in 1977, Inpro/Seal has become an parts. Visit CMI, CSI, Tabor Machine, Norris makes the HL260M Dri-Prime pump ideal industry-leader in permanent bearing pro- Screen and MCI. for mining applications. tection for rotating equipment. The com- www.elginequipment.com www.godwinpumps.com pany’s products include the latest generation bearing isolator, the VBXX-D, Fenner Dunlop—Booth 1213 Grindex Pumps—Booth 6042 the Air-Mizer non-contacting shaftseal and Fenner Dunlop Engineered Conveyor Grindex Pumps offers a complete line of CDR/MGS shaft grounding technologies. Solutions, a long-time global leader in con- highly efficient and reliable submersible Inpro/Seal’s product lines are installed on veyor belting for mining and other industri- pumps designed for heavy-duty drainage, a variety of rotating equipment across the al markets, has expanded its offering to sludge and slurry applications. On con- mining industry. Its technology increases become a single source solutions provider struction sites, in mines and various indus- the reliability of applications and delivers of conveyor system design, system install, trial applications, Grindex submersible real cost savings by improving mean time conveyor system products, and conveyor pumps are constantly being put to the test between repair (MTBR) and mean time services. Fenner Dunlop will feature a in some of the most demanding applica- between failure (MTBF). Inpro/Seal under- working conveyor system that includes tions. Unique features: Air cooling valves stands the high cost of downtime, so it has Fenner Dunlop’s belt cleaners, idlers, pul- permit pumps to run dry without damage. built a reputation on customer service and leys, diagnostic rip detection and belt mon- With SMART motor protection, Grindex same-day shipments of most of its prod- itoring systems, drive systems and Pumps will not run backward, will not sin- ucts—even new designs. premium conveyor belting. Fenner Dunlop gle phase, will not overheat. Grindex calls it www.inpro-seal.com offers worldwide global capabilities in steel “trouble free dewatering.” MSHA-approved cord and fabric belting, diagnostic services pumps also available for use in gassy mines and customized value-added programs. or tunnels and offered in dewatering and www.fennerdunlopamericas.com sludge configurations. Pump designs range between 0.6 and 140 hp and deliver up to 5,000 gpm with pressures of up to 750 ft. www.grindex.com/us

Godwin Pumps—Booth 3105 Iowa Mold Tooling Co.—Booth 8571 The Godwin Dri-Prime 10-inch HL260M Iowa Mold Tooling will introduce a new automatic priming centrifugal pump is lineup of TireHandler tire manipulators. designed for large, high-head, high-flow jobs. Gundlach Equipment Corp.— These units are designed to safely and effi- It provides maximum flows to 3,600 gpm, Booth 7985 ciently install and rotate the massive tires total dynamic head to 500 ft, and solids-han- Gundlach is a global manufacturer of size found on mining and construction equip- dling capabilities to 2 inches in diameter. reduction equipment with a full line of roll ment. Available with familiar mounting crushers and breakers for primary and sec- options for a front-end loader or forklift ondary crushing, impact crushing cage mills, truck, the revamped TireHandler lineup fine grinding roll mills and small tonnage will offer increased capacity, enhanced fall- ash/sampling crushers all engineered with back protection and optimized design. performance and maintainability built in. www.imt.com The company’s exclusive Nitroil System allows adjustment of the roll gap while the ITT Goulds Pumps—Booth 3375 crusher is running, as well as enabling one Introduced in December 2011, the ITT roll to ‘kick-back’ when tramp metal or some Goulds Pumps XHD Extra Heavy Duty Lined other uncrushable item enters the crusher. Slurry Pump sets a new standard for reliabili- The company’s crushers are specifically ty in slurry pumping. The XHD can replace designed for precise product sizing with few- existing slurry pumps without expensive

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and brow support. J.H. Fletcher has had a and efficient manner and offers optimal constant effort to provide and enhance a recommendations for corrective action. safe and productive work environment and www.konecranes.com these two machines (models CHDDR and CDDR) meet that bill. The CHDDR will have L-3 Communications— material handling and rib access booms. Booth 736 This machine will aid in overcoming the L-3 Communications will supply burdens of additional ground con- exhibit an enhanced version trol material required today, as well as of its industry-leading wire- improve operator station ergonomics by less communications and incorporating the rib access boom and tracking product for under- mesh/mat handling system with clamps on ground mines, the Accolade the TRS. The CDDR will showcase our low Mine Safety System. This retrofitting and be maintained while run- profile rib access booms and air curtain enhanced version includes ning. The XHD is designed for maximum technology. Fletcher has always been at new location/position uptime and for quick, easy and safe mainte- the forefront of walk thru technology, and equipment and leaky feeder nance when required. Suited specifically for these features will enhance operator and POTS integration capa- use in Class III (heavy) and Class IV (very ergonomics and environment. bilities. The customizable heavy) slurries as defined by the Hydraulic www.jhfletcher.com system provides a self-heal- Institute, the XHD is ideal for applications ing, redundant and survivable voice and such as heavy-media cyclones, raw coal feed data network, allowing for both communi- and thickener underflow. Features include: cation underground (miner-to-miner) and Adjustable suction seal ring; split stuffing between surface and sub-surface person- box; replaceable wet end cartridge; and i- nel, and a real-time tracking capability for Alert condition monitor. The XHD took all personnel. Approved for use by MSHA, home top honors for product innovation at the state of West Virginia and the common- the 2012 Pump Industry Awards, presented wealth of Pennsylvania, L-3 has installed by the British Pump Manufacturers’ Accolade in mines throughout the United Association. www.ittmining.com States. www.L-3com.com

Jennmar—Booth 4237 Legacy Building Solutions— Stop by Jennmar’s booth to learn about its Konecranes—Booth 27093 Booth 8989 latest product developments including the Konecranes will demonstrate its RailQ Legacy Building Solutions introduces the injectable cable bolt, non-corrosive prod- Runway Survey technology, designed for industry’s first line of fabric buildings to ucts, hydraulic prop and yielding rock bolt, overhead lifting equipment runways. It incorporate structural steel beams instead to mention just a few. The company is also combines laser survey techniques with of open web trusses. This new engineering excited about its affiliate Jennchem’s inno- Konecranes-specific software to accurately concept provides a high level of flexibility vative product line including J-CRIB, J- measure straightness, elevation, rail-to-rail for portable or stationary facilities. Unlike SEAL and J-CRETE. Jennmar is continuing elevation and rail span. Konecranes engi- hollow tube steel, the solid structural steel to grow and expand globally with acquisi- neers will be on hand to demonstrate how beams are not vulnerable to unseen corro- tions in Poland and the Czech Republic. the RailQ system uses visualization tech- sion originating inside a tube. Additionally, www.jennmar.com nology and a remote controlled robot trol- the structural steel has multiple coating ley which runs along the rail to collect data options, including hot dip galvanizing, red via Bluetooth technology. The system oxide primer and powder coat paint. The transfers the data to a total station, and strength of the structural steel frame pro- then generates 3-D and 2-D graphs of the vides several engineering advantages, runway rails to identify misalignment and including the ability to relocate buildings tracking issues. It conveys information on by towing or crane. The straight sidewall the runway alignment in an accurate, safe design allows for the inclusion of a variety of overhead doors, exit doors and dormers along the sides. Structures can be modified

J.H. Fletcher & Co.—Booth 2615 J.H. Fletcher will feature two machines for MinExpo geared toward coal. The majority of our coal customers today are installing more ground control material than ever before. Much of this is in the form of rib

38 www.coalage.com July 2012 minexpo preview continued to provide desired eave extensions and (102 mm)—and with the widest range of replacement, field services, preventive interior columns. They also can be engi- application-specific wire diameters. maintenance, advanced performance neered to carry ancillary systems that need www.majorwire.cc materials, automation solutions, plant to be suspended, including overhead diagnostics, equipment refurbishment and cranes, fire suppression systems, ventila- Martin Engineering—Booth 10320 a broad range of training courses. Metso’s tion and lighting. and Booth 4039 comprehensive service offering is backed www.legacybuildingsolutions.com Martin Engineering is a leading interna- by ever-expanding global resources, plus tional developer, manufacturer and suppli- an industry-leading OEM parts inventory. Major Wire—Booth 554 er of innovations to make the handling of The company offers engineered-to-order Major Wire Industries Ltd. will display Flex- bulk materials cleaner, safer and more pro- equipment and custom rebuilds and Mat 3 High-Performance, Self-Cleaning ductive. Martin offers technologies that retrofits—all based on OEM specifications Screen Media. It is now available in both boost flow, reduce dust and spillage, extend and developed with advanced knowledge modular and tensioned versions to help min- component life and reduce downtime, of process technology. Metso’s team of ing and industrial minerals operations signif- resulting in improved operating environ- more than 1,700 field service technicians is icantly increase screen capacity and material ments and increased profitability. Martin expertly trained to diagnose, maintain and throughput. It employs independently has established a network of subsidiaries, repair its equipment. www.metso.com vibrating wires that increase product licensees and representatives across the throughput by up to 40% over polyurethane globe. Martin business locations include Michelin Earthmover Tires— and rubber panels or traditional woven wire Mexico, Brazil, China, France, Germany, Booth 6971 by increasing open area and eliminating United Kingdom, South Africa, Turkey, Michelin Earthmover Tires leads the indus- blinding, pegging and clogging. The most Indonesia, India, Canada, Australia, Japan, try with the most advanced radial tires for commonly used version for mining and Chile and Colombia. www.martin-eng.com equipment ranging from forklifts, to load- industrial mineral applications, Flex-Mat 3 ers, to giant haul earthmovers. Dedicated to Modular 1- x 1-ft (305- x 305-mm) and 1- x 2- McLanahan Corp.—Booth 4245 the improvement of sustainable mobility, ft (305- x 610-mm) panels have more open and Booth 7626 Michelin designs, manufactures and sells area and provide up to 50% more screen McLanahan will feature its equipment and tires for every type of vehicle, including air- capacity than polyurethane and rubber pan- services at two different locations. The larg- planes, automobiles, bicycles, earthmovers, els. Flex-Mat 3 Modular also allows for pre- er of the two locations is Booth 4245. At this farm equipment, heavy-duty trucks and cise spec material passing for up to 50% of exhibit, the company will feature full-scale motorcycles. The company also publishes the wire’s life. Traditional polyurethane and equipment including a DDC-Sizer, De- travel guides, maps and atlases covering rubber panels tend to begin passing out-of- watering Screen and Separator combina- Europe, Asia, Africa and North America. spec material as soon as the top surface tion, Sampling System, Universal Impact Headquartered in Greenville, S.C., Michelin wears and the openings enlarge. The modu- Crusher, Recessed Plate and Frame Pilot North America employs 22,200 and oper- lar panels install easily, using the same Press, a display of polymer wear parts and ates 18 major manufacturing plants in 16 frames and installation types as traditional the newly designed LabMill Crusher and locations. www.michelinearthmover.com polyurethane and rubber panels. Rocker Tooth Crusher. Additional lines of For tensioned screen decks, Flex-Mat 3 McLanahan equipment will be represented Tensioned’s signature lime-green with a large display of 3-D models showcas- polyurethane strips align to the screen ing McLanahan’s capabilities in crushing, box’s crown bars and hold individual feed preparation, washing and water man- wires in place as they run from hook to agement. The second space, Booth 7626, hook. Wear life exceeds that of woven wire will feature 3-D models from the Universal up to three times because there are no equipment line and its capabilities in cross wires with high wear spots like crushing, feeding and screening. woven wire. Flex-Mat 3 Tensioned is www.mclanahan.com available in the industry’s broadest range of opening sizes—30 mesh to 4 inches

MICO—Booth 7557 MICO will introduce the 520 Series hydraulic apply caliper disc brake for on- and off-highway service braking applica-

Metso—Booth 2839 With more than 70 locations around the world, Metso is a local service partner for life cycle services, spare and wear parts

40 www.coalage.com July 2012 minexpo preview continued tions. The fixed caliper type brake uses a Hardalloy 140, a hard surfacing stick elec- become an international leader in systems modulated hydraulic pressure source, such trode; Hardalloy 155, designed for overlay for minerals processing and liquid/solid sep- as a master cylinder, to control brake on surfaces subject to extremely severe aration. www.dewater.com torque. Installation of the caliper disc brake abrasion; and Tube-Alloy 240-O self-shield- is made simple due to the brake’s flexibility ed flux-cored wire. www.millerwelds.com Pioneer Solutions—Booth 5433 to be mounted in either a horizontal or ver- and www.hobartbrothers.com Pioneer Solutions will introduce its new tical position. The unit can be attached Front and Rear Axle Oil Cooled Disc Brake directly to a threaded hanger or clamp. Philippi-Hagenbuch—Booth 6210 Product Line for Off-Highway Dump www.mico.com Philippi-Hagenbuch’s line of patented HiVol Trucks. This brake represents Pioneer’s first Water Tanks provides a design that optimizes endeavor into component supply and Mine Site Technologies—Booth 2371 capacity and enhances travel safety. Built for launches a new manufactured products Mine Site Technologies (MST) recently any make or model of off-highway truck, the business segment. The company uses its 30 developed the “ImPact - One Network” solu- HiVol water tank series serves as an ideal plus years of off highway equipment tion that provides a single network for com- solution for a multitude of applications. The design, manufacturing, and product sup- munications, tracking, data collection, video designers calculated the dynamic center of port experience to provide valuable lifecy- and more. At MINExpo, MST will have oper- gravity of the fluid within the tank to engi- cle solutions to its customers. ating systems up and running at the stand to neer the HiVol series with the lowest weight Pioneer’s brakes are designed to exceed provide live, hands-on demonstrations of the and greatest carrying capacity. This capacity industry braking standard requirements ImPact system. Included in the demonstra- can range up to 60,000 gallons—more than and easily interface with different OEM axle tion will be the MinePhone VoIP telephone half the capacity of a water tower. To ensure configurations. Each series is designed to handset and the ICCL (Integrated maximum safety, a patented fluid baffling be expandable within a given payload Communications Cap Lamp) that incorpo- system not only stops water surges from the range. The brakes are manufactured with rates text messaging and tracking into a sin- back to front, but effectively provides a full- high quality materials to provide perfor- gle cap lamp product. In addition, MST will height/full-length/full-center Backbone mance and reliable operation. Pioneer’s showcase its full range of products, including structure that eliminates surging from side to plans include a series of brakes for use on several partner products. www.minesite.net side as well. www.philsystems.com mechanical and electric drive dump trucks with 25 ton to 400 ton payloads. The busi- Miller and Hobart Brothers— ness will support customers throughout Booths 5511/5513 and 4016 new product development, prototype, test- Miller Electric Mfg. Co. and Hobart Brothers ing, production and field service, including Co. will showcase welding solutions, as well availability of aftermarket parts. as introduce new welding equipment, acces- In addition to the brake product, sories and filler metals. Miller and Hobart Pioneer’s manufacturing operations will Brothers will exhibit together, while Miller focus on other highly engineered compo- will have a separate booth dedicated to work nents, such as differential gearing and final truck solutions. Live demos in booths drive planetary assemblies. These compo- 5511/5513 will include hard surfacing, weld- nents require advanced manufacturing ing and plasma cutting with the latest prod- processes and a high level of quality to per- ucts from both companies. Technologies PHOENIX Process Equipment Co.— form in the extreme applications of the off featured will include: the Trailblazer 302 Air Booth 12530 highway equipment industry. Pak and the Big Blue Air Pak, the Miller Big PHOENIX Process Equipment will demon- Pioneer Solutions will be display a new Blue 700 Duo Pro, the EnPak Mechanic Series strate the Diemme filter press. The trailer brake, designed to be used on 320 ton elec- diesel engine-driven air compressor, mounted system includes a Diemme KE500 tric drive dump trucks. hydraulic pump and generator that inte- filter press, 10 gpm membrane pump, 200 www.pioneersolutionsllc.com grates into a truck’s fuel and electrical sup- gallon mix tank, and mixer. Established in ply, and the XMT 450 multiprocess welding 1923, Diemme has developed innovative, inverter with SuitCase X-TREME voltage- rugged dewatering solutions that are sensing wire feeders. designed specifically for demanding mining Filler metals to be showcased and process dewatering applications. Through demonstrated by Hobart Brothers include: internal product development and strategic partnering relationships, PHOENIX has

Sandvik Mining—Booth C-7309 Sandvik Mining will introduce newly enhanced automation concepts that open

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line is Sandvik’s latest, new high-perfor- zation, visibility, security, tool tracking and mance DTH hammer family, providing high accountability for customers in the power impact energy and drill performance to max- generation industry. The modular tool cribs imize productivity in variable ground condi- are available in many different sizes and tions. The RH 460 hammer family will consist configurations, and can be designed to fit of 3.5-, 4-, 5-, 6- and 8-inch hammers. any power generation work site footprint. www.miningandconstruction.sandvik.com www.snapon.com/industrial

Sleipner—Booth 28116 Strata Worldwide—Booth 5407 Sleipner offers a unique system of trans- For over two decades, Strata Worldwide has porting tracked excavators in open-pit built a reputation of bringing differentiated mines and quarries. The system is based on and diverse products to market that meet axles and heavy tires with ramps. With the and exceed industry trends and demands. up a new era in mining. The Sandvik aid of the set of Sleipners and a haul truck Strata first introduced engineered sec- AutoMine product family is the most com- the excavator is easily and quickly moved to ondary roof support systems in 1992; sup- prehensive automation offering for under- the desired location. In addition, the sys- ports that incorporated innovative safety ground and surface mining. Increasing fleet tem offers considerable reduction to the features. The company then went on to pio- utilization and production rates, improving wear of the excavator’s undercarriage and neer post-emergency safety and refuge in working conditions and reducing mainte- tracks. There are currently 11 models in the underground coal mines with the introduc- nance costs, Sandvik AutoMine promotes manufacturing program covering the exca- tion of a powerless, inflatable mine refuge preeminent safety, productivity and peace vator weights from 30 t up to 550 t. Most chamber to provide breathable air to min- of mind for mining operations. Sandvik models incorporate different ramp sizes to ers trapped underground. Today, Strata has Mining’s Automation focuses not only on fit different excavator brands and models. developed a comprehensive safety system equipment autonomy, but also on mining The newest model, E550, is also the largest of integrated technologies that together process automation and management. and can move excavators up to 550 t and promote complete mine-wide awareness Sandvik’s bolter miner, MB610, offers beyond. In the early part of 2012, Sleipner for a higher level of safety, efficiency and fast and easy access to maintenance points, sold the system to mines in Australia, South productivity. This safety platform consists large and ergonomic working platforms, Africa, Ghana, Indonesia, Austria, Angola of stand-alone yet compatible systems enhanced cutting forces, and world-class and Chile. Sleipner shares its stand with including wireless communications and performance. HSM Tire Co. with headquarters in tracking, proximity detection and mine Since Sandvik Mining Systems intro- Houston, Texas. HSM is specialized in atmospheric monitoring. duced its PF300 fully-mobile In-Pit heavy mining and OTR tires. HSM Tire is www.strataworldwide.com Crushing and Conveying (IPCC) system in Sleipner’s agent in U.S. and Mexico. March 2009, renewed interest in mobile www.sleipner.fi crushing concepts in the major mining markets has been extraordinary. The newly Snap-on Industrial—Booth 27212 developed fully-mobile crushing plant Mobile Tool Solutions from Snap-on makes the IPCC method a better alternative Industrial is a program combining tools to traditional truck haulage due to lower and asset management software with cus- operating and maintenance costs, higher tomizable, mobile tool cribs to significantly energy efficiency, significant reduction of reduce tool replacement costs while

CO2 footprint, and radical decline in dust increasing customer productivity. Say emission. goodbye to the days of lost tools because at The PF300 uses Sandvik’s crushing the heart of mobile tool cribs is the compa- technology to offer a full range of roll crush- ny’s Level 5 Tool Control System, which has Superior Industries—Booth 19100 ers flexible enough to suit even the most the ability to provide customers with a The TeleStacker Conveyor from Superior challenging mining applications. The entire completely controlled environment. From Industries is a heavy-duty telescoping radi- system is custom-engineered by Sandvik CAD tool control layouts and keyless entry al stacking conveyor. Built for high produc- Mining and equipped with genuine parts. systems to asset management software for tion, the TeleStacker conveyor offers the With commissioning of the two first units tool tracking, Level 5 offers greater organi- ability to stockpile 30% more material per scheduled for the mid-2012, the PF300, move than similar radial stackers, and an with its compact and stable design, has operating tonnage ranging from 200 to potential for future market share for IPCC 5,000 tph. The machine is available as a applications. specially configured Mine Duty model Cutter picks featuring the XT grade tung- designed and built for the mining industry sten carbide can cut materials up to 180 MPa and heap leaching applications. (26,000 psi). The new RR321 rotary drill bit A key element of the TeleStacker convey- continues the development of a comprehen- or design is the patented FB Undercarriage sive portfolio, which includes the RR220 support system, which reducesthe deflection (standard air), RR321 (premium air) and of the conveyor by 200%. It can stack materi- RR440 (sealed bearing). The RH460 hammer al up to 5,000 mt/h. The unit features a longer

44 www.coalage.com July 2012 minexpo preview continued stinger, or internal, conveyor, enabling it to the new benefits of a smaller compact size, automatic start/stop and Silent Knight sound pile 30% more material per move, resulting lighter weight, fewer parts, less maintenance, attenuation. www.thompsonpump.com in higher capacity surge piles often required and lower price. The Thompson Compact in heap leaching applications. pump is 35% smaller and 20% lighter but Victaulic—Booth 6949 Holding the record for having pro- offers the same great performance as a stan- Victaulic, a leading manufacturer of duced the largest telescopic radial stack- dard size pump with 24-hour run time fuel mechanical pipe-joining systems, will ing conveyor in the world at 190 ft in tank. Available in the most common diesel- introduces the AGS Vic-Ring System. The length, Superior Industries offers custom drive portable pump sizes of 4 inches and 6 system eases the installation of and pro- units in larger sizes upon request. The inches, the Compact series offers an eco- vides a strong connection for large-diame- Mine Duty model is equipped with belt nomical alternative to similar sized portable ter pressure piping systems up to 60 inches widths ranging from 24 to 72 ft. Every unit pumps—a significant savings compared to (1,525 mm), while extending the service life incorporates mine-duty 2.0 pulleys and standard 4 inches and 6 inches compressor- of abrasive services piping. It can extend idlers, manufactured by Superior. assisted pumps. Thompson Pump’s the life of abrasive service piping systems www.superior-ind.com Compact pump series includes the by maintaining the full pipe-wall thickness Enviroprime system, which keeps the and creating a smooth flow path. pumpage from discharging into the environ- www.victaulic.com ment unlike the competition. The Compact series is available with developments such as

Thompson Pump Compact Series— Booth 5801 Thompson Pump will showcase the W.S. Tyler—Booth 10250 Compact pump series with all the benefits of W.S. Tyler will showcase screening the popular Thompson Pump JSC series with machines, screen decks and washer technol-

46 www.coalage.com July 2012 minexpo preview continued ogy. The F-Class Vibrating Screen offers a Weir Minerals—Booth 3143 Xylem—Booth 3105 solution for scalping and classifying of ores, Weir Minerals will debut a variety of prod- Xylem, which was spun-off from ITT minerals, stones, sand and gravel. Featuring ucts at MINExpo 2012. The Linatex Wear Corporation last year to form a leading four-bearing technology, the F-Class mini- Indicator System transmits and receives global water technology company, will mizes structural vibration and delivers a con- messages, providing a revolutionary early display its full range of Flygt and Godwin sistent stroke, which two-bearing screens warning system to mine operators. This dewatering pumps and services. With a cannot provide, and with right media choice system detects more than just a break in rental bank of 20,000 products Xylem virtually eliminates blinding and pegging. the wire; it measures a change in resis- offers a range of surface-mounted and The Pro-Deck approach implements an anal- tance for more accurate results. The sys- submersible dewatering pumps including ysis and modification strategy in processing tem can save time, money and lives by slurry pumps, MSHA and CSA certified operations to maximize screen productivity notifying when a pipe needs to be pumps and starters, portable high-head and minimize wear by selecting the appro- replaced or fixed. Weir will also display drainage pumps as well as pump system priate type of screen media according to Warman Centrifugal Pumps to Cavex engineering, contingency planning and three phases of screening. Cyclones, and Multiflo Dewatering turn-key water management expertise. The new Hydro-Clean washing unit Solutions to Isogate Slurry Valves. Xylem’s dewatering services offering effectively cleans deleterious material from www.weirminerals.com includes open pit drainage, drill hole product streams, while reducing water con- drainage, face and stage dewatering, shaft sumption by up to 75% over. It is available bottom drainage, main drainage, process in four model sizes that produce 20 to 400 water supply, storm water management tph, depending on the application. and heap leaching. Xylem’s focus is to www.wstyler.com continue to develop energy-efficient and reliable solutions so that unwanted water is removed as quickly and as cost-effec- tively as possible. This year, Xylem expanded its dewatering capabilities in France, Brazil, Australia, Vietnam and Panama and has plans for further expan- sion over the next two years. www.xyleminc.com

July 2012 www.coalage.com 47 prep plant design

Engineering the new Wild Boar Prep Plant The design integrates safety and maintenance consideration with simplified circuits

Peabody Energy constructed and commissioned the new Wild “We considered several options for Wild Boar,” said Dan Boar preparation plant during 2010. Despite an accelerated Pilcher, senior preparation manager for Peabody Energy’s construction timeline, developers were able to incorporate ease Midwest Division. “A few idled plants in the region could have of maintenance and accessibility into a simplified flowsheet, been relocated. A cost analysis was performed on that option. which included heavy medium cyclones, compound spirals and New plant construction is the easiest path, but not necessarily de-slimed flotation circuit. Strategically located on a rail line the most cost effective. The third option, which is the one we near Lynnville, Ind., the 650-ton-per-hour (tph) Wild Boar today selected, combined used equipment with a new structure. We processes coal effectively from three local surface mines, main- wanted a low cost facility, not just with construction costs, but taining a high availability at a low operating cost. also as far as operating costs.” Peabody owns the plant and United Minerals operates the One of the more daunting aspects of this project was the plant. During the front end engineering process, prep profes- accelerated construction schedule. One of the mines that would sionals from both companies collaborated with General Mine feed coal to the Wild Boar prep plant came online early. Coal Contractors, the company selected to construct the plant, and was being trucked to an existing plant one-way 13 miles and Ezra Smith, a consultant who used to manage the Black Beauty those expenses were mounting, Pilcher explained. Construction prep plants. The design team considered several options to began during mid-March 2010 and the plant came online and minimize plant construction costs while still building a quality under budget during mid-November 2010—nine months from facility with good operating and maintenance features. The concept to reality. options included relocating an existing idled facility, building an all-new plant, and building a plant with as much used equip- Process Flowsheet ment as possible. They settled on a final design that included The Wild Boar plant can be broken into three main areas: the raw several pieces of used equipment, a three-circuit plant for effi- coal handling system, preparation plant and clean coal handling cient processing of each size fraction, and an overhead bridge system. The raw coal system includes a truck dump, rotary break- crane for improved maintenance access. er and a radial stacker with the ability to divert raw, saleable

Figure 1—A simplified Wild Boar plant flowsheet shows the large diameter heavy media cyclone, compound spirals and the flotation circuit.

48 www.coalage.com July 2012 prep plant design continued

Peabody Energy constructed the Wild Boar prep plant between March and November 2010.

material from the prep plant. Material directed to the plant is cleaned in a simplified three-circuit system (See Figure 1). “The plant uses a large diameter heavy-media cyclone, com- pound spirals and a deslime flotation circuit,” Pilcher said. “It’s the only place in the Midwest that [Peabody Energy] is using compound spirals. We have considered them at other locations, but because of the height requirement, it has been too difficult to implement them in existing plants. So we decided early-on it was something we wanted to do with this new plant and they have been performing well.” After cleaning, coal is stored in one of three product piles before being shipped by rail. “The Wild Boar prep plant has a simplified circuit and the flow sheet emphasizes ease of maintenance and reliability,” Pilcher said. “The primary design considerations focused on safety, followed by process performance and maintenance. We wanted an efficient plant with plenty of room for access.” Run-of-mine coal is delivered by trucks to a series of ground storage piles. “We are processing coal from three surface mines,” Pilcher said. “Trying to keep those coals separated cre- ates another set of difficulties.” A front-end loader then blends this material into a 150 ton hopper. After being conveyed to a scalping screen for initial siz- ing, a rotary breaker reduces the coal top size and removes over- size rock and foreign material. A radial stacker after the sizing station enables diversion of material to a direct ship pile if the product quality is sufficient. If the raw coal requires cleaning, it is instead stored in a raw coal pile which feeds the plant by way of a single vibratory feeder. The plant feed belt delivers material from the raw coal feed- er to a 10- x 20-ft, double-deck Banana screen. The oversized material is nominally 3-inches x 1-mm and reports to a 51-inch heavy medium cyclone (HMC). The HMC underflow reports to a single 8- x16-ft, double-deck horizontal screen for magnetite recovery. A flume screen precedes the vibrating screen to increase drainage area and ensure optimum magnetite recovery.

50 www.coalage.com July 2012 prep plant design continued

“One of the key design elements with the screens is the sieve bends in front of the double-deck clean coal screens, which gets the media off of those screens,” Pilcher said. The HMC overflow reports to two sets of flumes and 8- x 20-ft, double-deck screens set at a slight downward slope. Afterward, the finer HMC product reports to two Tema 1100 screenbowl centrifuges to reduce surface moisture before joining the remain- ing product on the clean coal collecting conveyor. “As far as the coarse coal, everything reports to a 51-inch [HMC],” said Terry Hillsmeyer, manager-preparation, United Minerals. “Clean coal reports to the 8- x 20-ft clean coal screens, which feed the Tema 1100 dryers and then the clean coal belt. The refuse reports to refuse screens and is discharged to a bin that is hauled back to the pit.” The raw coal screen undersize material, minus 1 mm, reports to the raw coal sump before being pumped to a bank of seven 15-inch raw coal classifying cyclones. The cyclone underflow reports to a bank of 14 compound spirals focused on cleaning the 1-mm x 100-mesh material. Everything feeds into the 10- x 20-ft Banana screen, explained Hillsmeyer. “The minus 1 mm reports to a raw coal sump, which pumps to a bank of 15-inch cyclones,” Hillsmeyer said. “The clean coal product reports to a set of spirals. Some of the spiral overflow reports to a screen-bowl dryer. Some reports to a CMI dryer. It depends on the load on the flotation cells.” The spiral reject is dewatered on a high frequency screen before reporting to the reject belt. Spiral product reports to a clean coal sieve bend for initial dewatering. The sieve bend product then splits between the fine coal centrifuge and screen- bowl for final dewatering. The sieve bend underflow joins the raw cyclone overflow as the flotation circuit feed. Before reporting to the flotation cell, the material is de-slimed in a bank of 10 10-inch classifying cyclones. The overflow is discarded to the thickener while the de-slimed underflow reports to a DEC flotation cell for cleaning. “We are trying to capture as much fines as we can with the flota- tion circuit,” Hillsmeyer said. “It’s a little bit of a problem when

Flume screen boxes are placed before the drain and rinse screens.

July 2012 www.coalage.com 51

prep plant design continued you are washing three seams, but we have found a happy medi- um with reagents that seems to work well.” The tailings are discarded to the thickener, and the product joins a portion of the sieve bend product for dewatering in the screenbowl centrifuge. “The screenbowl effluent, high frequen- cy screen effluent and flotation effluent report to the thickener,” Pilcher said. “Thickener underflow is pumped about 12,500 ft with two stage slurry pumps. The discharge of the second pump is 220 psi. It takes a lot of horsepower to get the slurry to the pit.” The reject belt containing the dewatered HMC and spiral refuse delivers its cargo to a refuse bin. From there, the coarse refuse is returned to the pits for final disposal. The ultrafine refuse in the thickener underflow also returns to the mine for disposal in abandoned pits. The product conveyor transports coal to a series of ground storage piles until it is needed for rail loading. The clean coal handling consists of one bifurcated coal pile for selective loading according to customer specifications. Mass flow gates gravity feed a 60-inch reclaim conveyor at 3,300 tph, and a flood loading system fills the rail cars. Coal is shipped by rail to customers or to a dock on the Ohio River. Some of the best practices Pilcher mentioned, included: cen- tralized make-up manifolds and valves; retractable hose reels; the overhead crane; High Bay lighting, which provides very good light; and the control room, which sits outside the plant. “Some operators prefer to be in the plant so it helps to have cameras installed so they can see what’s happening,” Pilcher said. “One of the designs we have been trying to implement in all of our plants is an overhead bridge crane, which improves safety as well as maintenance.” Normally make-up manifolds are placed above the sumps, Pilcher explained, which is the worst possible place to put them. “We moved them to another area on the second floor above the sumps,” Pilcher said. “Our chemical systems are also located outside the plant which makes them easier to maintain and inspect.” Pilcher credits Hillsmeyer and his group for finding good used equipment and restoring it. “Watching the steel go up and setting the equipment in place is a very rewarding experience,” Pilcher said. “It took eight months to build it. It maintains a raw feed capacity of 650 tph and the availability is extremely high. Part of that is good design and part of it is the skill of the people running the plant. The magnetite loss is less than 0.5 lb/ton of raw coal.” Under a col- laborative effort between Peabody Energy and United Minerals, the Wild Boar prep plant was successfully designed, built and commissioned under budget and within the time constraints of a very aggressive schedule.

This article is based on presentation that Dan Pilcher, senior preparation manager for Peabody Energy’s Midwest Division, and Terry Hillsmeyer, manager-preparation, United Minerals, gave at Coal Prep 2012, which took place dring May in Lexington, Ky. For more information, go to: www.coalprepshow.com.

July 2012 www.coalage.com 53 public relations Public Relations vs. Public Affairs Knowing the difference, companies can communicate better

BY AL MAIORINO

Organizations often seek a relationship swarming with messages. Messages help coalition. Grassroots campaigns include a with their public and struggle finding the develop a brand, create an image and ulti- wide range of activities—creating and effective way to do so. This is when public mately provide publicity an organization maintaining a database of supporters, relations and public affair firms are hired. needs. The communication then becomes sending out informative mailers to local Believing that public relations is an umbrel- more commercialized. residents, organizing petition drives, and la term and public affairs is a mere specialty Public Affairs can be more short-lived encouraging community members to write within it, many organizations jump into commercialization. With public affairs, the letters of support to their elected officials hiring a public relations team without messages are less commercialized and and local newspapers. In the end, the pri- knowing the full benefits of both industries. firms concentrate on localized issues mary goal of a grassroots campaign is to Definitions and firms are completely differ- between the people and a legislative body send a positive message about the project ent. Organizations must acknowledge the or an organization and its community. The through the community or targeted area. differences between public relations firms main focus is obtaining support and When building a relationship with a select- and public affairs firms to effectively have debunking opposition through grassroots ed group of people regarding your compa- their message delivered. communication by building relationships ny, project or legislative issue, grassroots Public Relations is ongoing commer- with communities. campaigns are the best way to go. cialization. It is the practice of managing The main goal of a grassroots campaign Public affairs certainly involves public the flow of information between an organi- is to bridge the gap between companies relations techniques in a day-to-day capaci- zation and its publics. Firms have creative, and the community. In such campaigns, ty, but it most often influences the impacts original ways to grab the target public’s public affairs specialists seek local support of projects, initiatives and announcements attention amid thousands of media outlets to build allies in order to form a supporter on respective communities. This is where

54 www.coalage.com July 2012 public relations continued public affairs firms meet “Not In My Even though they have their similarities, they should always consider their audi- Backyard” groups. NIMBY groups represent the biggest difference is in each firm’s ence, the type of campaign they want, and members in communities who debate over campaigns and the specialization of their the specializations of the firm’s practition- nearby developments. Often, these NIMBYs practitioners. ers. Organizations must acknowledge the dispute projects regardless of the project’s Public relations organizations possess a differences between public relations firms nature and apparent benefits. The fact that wide variety of tactics and skills, but when and public affairs firms to effectively reach a development might enter their communi- building a relationship with a selected their publics. ty spurns NIMBYs to action. This action is group of people regarding a company, pro- frustrating for developers and community ject or legislative issue, public affairs cam- Maiorino is president of Public Strategy members who may support the project or paigns may be best way to go. When an Group, based in Boston, Mass. He can be even growth in the community. organization thinks about hiring a firm, reached at: 617-859-3006. Very often the opposition stems from misinformation and poor communication between project representatives and the community. Sometimes communities form their negative opinion based on misunder- stood facts about the proposed develop- ment. In addition, local residents may not know the benefits the project will bring to their community. Public affairs plays on the offensive. Instead of waiting for the opposition to grow, public affairs concen- trates on providing communities with the real facts and advantages of your project. Public affairs firms develop extensive experience in winning land use and zoning campaigns. They are familiar with referen- dum management, legislative issues, and use grassroots campaigns to build a reputa- tion and find common ground with com- munities and NIMBYs. Some public relations firms aren’t always equipped with the necessary tools and experience in developing rapport with a community. Additional knowledge of government and policies is needed beyond public relations knowledge. Public affairs practitioners fos- ter relationships with communities, their NIMBYs and organizations. Often, public relations firms do not spe- cialize in NIMBY opposition. Their cam- paigns tend to target the entire community, create awareness of their client, and gener- ate positive attitudes. There is little negoti- ation and direct contact with NIMBYs. Public relations is considered a highly credible form of promotion. According the Edelman trust barometer, it is more credi- ble to advertising 9:1. Professionals know how to strategically capitalize on the influ- ence of the media to portray messages. Various tactics such as press kits and social media management are used to establish credibility for a company in the minds of targeted consumer groups. A public affairs firm can use many pub- lic relations’ tools to influence public poli- cy. The two types of firms overlap in many areas: relationship building, researching publics, implementing and maintaining their campaigns and measuring impact.

July 2012 www.coalage.com 55 buyers guide 2012

2012Coal Age Buyers Guide

The Coal Age Buyers Guide lists more than 500 companies that market equipment and Country Key Abbreviations AUL Australia ITA Italy Co Company services to the coal mining and processing industry. These companies have placed adver- AUS Austria MAL Malaysia Inc Incorporated tising in Coal Age or one of its ancillary publications (i.e., Keystone Coal Industry Manual, BEL Belgium NET Netherlands Int’l International CAN Canada NOR Norway Ltd Limited Coal Prep Handbook & Directory, etc.), has exhibited at the Longwall USA International CHN China RSA South Africa Mfg Manufacturing DEN Denmark SPA Spain Corp Corporation Conference & Exhibition or the Haulage & Loading conference, or paid for the listing. Unless FIN Finland SRB Serbia Div Division FRA France SWE Sweden otherwise noted, the companies are based in the U.S. GER Germany SWI Switzerland IDN Indonesia UK United Kingdom For a more complete listing of all of the companies currently marketing equipment and IRE Ireland USA United States of America services to the mining and mineral processing business, please visit Mining Media’s inter- Coal Age’s 2012 Buyers Guide uses country abbreviations that can be active website World Mining Equipment (www.wme.com). found on the United Nation’s Web site.

Analysis Contour Mining, USA ...... +1 (304) 872-4841 FLSmidth Krebs, USA...... +1 (520) 744-8200 Energy Technologies Inc, USA ...... +1 (419) 522-4444 Cravat Coal Co, USA ...... +1 (740) 942-4656 Garlock Sealing Technologies, USA ...... +1 (315) 597-4811 Indutech Process Contral Inc, GER ...... +49 7484929740 Drummond Co, USA ...... +1 (205) 945-6300 General Kinematics, USA...... +1 (815) 455-3222 LECO Corp, USA...... +1 (269) 983-5531 Extreme Coal, Inc, USA ...... +1 (606) 422-1472 Greenfields Coal, USA ...... +1 (304) 929-3480 Scantech Int’l Pty, AUL...... +61 8 83500 200 Jeddo Coal, USA ...... +1 (570) 825-0138 Thermo Fisher Scientific, Inc, USA...... +1 (781) 622-1000 Jim Walter Resources, USA ...... +1 (813) 871-4811 Kiewit Mining Group, USA ...... +1 (402) 342-2052 Antiques/Collectors Lehigh Coal & Navigation, USA ...... +1 (570) 621-7372 Gundlach Equipment Corp, USA ...... +1 (618) 233-7208 Ohio Vintage Coal, USA ...... +1 (740) 924-4985 Murray Energy Corp, USA...... +1 (216) 765-1240 Guohua Technology Corp, USA...... +1 (859) 898-2128 Associations NB Coal, CAN ...... +1 (506) 327-2200 Haver & Booecker Maschinenfabrik, GER....+49 (0)25 22-300 Alaska Miners Association, USA...... +1 (907) 563-9229 Oxbow Carbon LLC, USA ...... +1 (561) 697-4300 Hazemag & EPR GmbH, GER...... +49 259477490 FORCE (Families For Coal), USA...... +1 (724) 684-8051 Patriot Coal, USA...... +1 (314) 275-3600 Hein Lehmann LLC, USA ...... +1 (678) 566-1987 National Mining Association, USA ...... +1 (202) 463-2600 Peabody Energy, USA...... +1 (314) 342-3400 IG America, USA ...... +1 (804) 733-0808 Rio Tinto Services, USA ...... +1 (801) 532-1729 Industrial Resources, Inc, USA ...... +1 (304) 363-4100 Auctioneers Ingwenya Mineral Tech, UK...... +44 1202706085 Hilco Industrial LLC, USA...... +1 (248) 254-9999 Coal Preparation Jadco, Inc, USA ...... +1 (724) 452-5252 Myron Bowling Auctioneers, USA ...... +1 (513) 738-3311 Allmineral LLC, USA...... +1 (770) 410-0220 Larox Corp, FIN ...... +358 (201) 113-311 Ritchie Bros. Auctioneers, USA ...... +1 (800) 211-3983 ASI Industrial, USA ...... +1 (406) 245-6231 Lincoln Contracting & Equipment Co, USA ...... +1 (814) 629-6641 BDP Industries, USA ...... +1 (518) 527-5417 Bearings Ludowici USA, USA ...... +1 (304) 855-7880 Beard Technologies, Inc, USA ...... +1 (405) 842-2333 Inpro/Seal Co, USA ...... +1 (800) 447-0524 Marietta Silos, USA ...... +1 (740) 373-2822 Bedeschi America Inc, USA ...... +1 (954) 602-2175 Kaman Industrial Technologies, USA ...... +1 (904) 696-2394 Maschinenfabrik Gustav Eirich GmbH & Co.KG ...... +49 06283 51-0 BinMaster, USA ...... +1 (402) 434-9102 Kaydon Bearings Division, USA ...... +1 (231) 755-3741 Maschinenfabrik Koppern, GER ...... +49 02324 207 0 Borton L.C., USA ...... +1 (620) 669-8211 Timken Co, USA...... +1 (330) 471-4392 MBE Coal & Minerals Technology GmbH, GER ..+49 221 99892 700 Caltex B.M.H. Systems, USA ...... +1 (972) 751-0500 Metso Minerals, USA ...... +1 (412) 269-5000 Buildings & Structures Centrifugal & Mechanical Industries, USA+1 (314) 776-2848 Minelco, Inc, USA ...... +1 (513) 322-5530 Allight Pty. Ltd, AUL...... +61 (8) 9302 7000 Centrifugal Services, Inc, USA...... +1 (618) 268-4850 ASI Industrial, USA ...... +1 (406) 245-6231 The Cypher Co, USA...... +1 (724) 325-3900 Bedeschi America Inc, USA ...... +1 (954) 602-2175 The Daniels Co, USA ...... +1 (304) 327-8161 BinMaster, USA ...... +1 (402) 434-9102 Delkor Pty Ltd, AUL...... +61 285967000 Farnham & Pfile Construction, Inc, USA ..+1 (724) 653-1010 Mole Master Services Corp, USA ...... +1 (740) 374-6726 Steel Nation Steel Buildings, Inc, USA ...... +1 (724) 873-7533 Ohio Magnetics Inc, (Stearns), USA ...... +1 (216) 662-8484 Caplamps Outotec Oyj, USA ...... +1 (904) 353-3681 Derrick Corp, USA ...... +1 (716) 683-9010 Koehler-Bright Star, USA ...... +1 (570) 825-1900 Downer EDI Ltd, AUL...... +61 2 9468 9700 Coal Mining Companies Eirich USA, USA...... +1 (847) 336-2444 Bull Mountain Mine #1 (Signal Peak), USA ....+1 (406) 323-4345 Elgin Equipment Group, USA ...... +1 (630) 434-7200 Centralia Coal Sales Co, USA ...... +1 (570) 822-4135 Eriez Magnetics, USA...... +1 (814) 835-6000 Pennsylvania Crusher Corp, USA ...... +1 (610) 544-7200 Cloud Peak Energy, USA ...... +1 (307) 687-6000 Farnham & Pfile, USA ...... +1 (724) 929-3151 Peters Equipment, USA ...... +1 (276) 322-5451 CONSOL Energy Inc, USA ...... +1 (724) 485-4000 Peterson Filters Corp, USA...... +1 (801) 487-7761

56 www.coalage.com July 2012 buyers guide 2012 continued

Kenwood USA Corp, USA ...... +1 (310) 639-9000 Picor, USA ...... +1 (423) 282-9900 L-3 Communications, USA...... +1 (703) 293-7813 Pioneer Conveyor LLC, USA ...... +1 (301) 334-8186 Matrix Design Group, USA ...... +1 (812) 490-1525 Precision Pulley & Idler, USA ...... +1 (800) 247-1228 Mine Site Technologies (USA) Inc, USA ....+1 (303) 951-0570 Rema Tip Top North America, Inc, USA ....+1 (520) 421-2280 Mine Site Technologies, AUL ...... +61 (2) 9437-4399 Phoenix Process Equipment, USA ...... +1 (502) 499-6198 Novariant, USA ...... +1 (510) 933-4800 Optical Cable Corp, USA ...... +1 (800) 622-7711 Pillar Innovations, USA ...... +1 (301) 245-4007 Richwood, USA ...... +1 (304) 525-5436 Pyott-Boone Electronics, USA ...... +1 (276) 988-5505 Rulmeca Corp, USA ...... +1 (910) 794-9294 Radio Frequency Systems, USA ...... +1 (203) 630-3311 Sandvik Mining & Construction, USA...... +1 (404) 589-3800 Polydeck Screen Corp, USA ...... +1 (864) 579-4594 Rajant Corp, USA ...... +1 (484) 595-0233 Smalis Corp ...... +1 (724) 925-8500 PrepTech Inc, USA ...... +1 (724) 727-3439 RuggedCom, CAN ...... +1 (905) 856-5288 Superior Industries, USA ...... +1 (320) 589-2406 Quality Magnetite LLC, USA...... +1 (304) 453-2222 SMC Electrical Products, Inc, USA ...... +1 (304) 736-8933 Takraf GmbH, GER...... +49 341 2423-500 Reiss Viking, USA ...... +1 (859) 296-2106 Snively, Inc, USA ...... +1 (440) 974-9937 Thor Global Enterprises Ltd, CAN...... +1 (905) 564-0440 Roberts & Schaefer Co, USA ...... +1 (801) 364-0900 Stran Technologies, USA ...... +1 (203) 729-2572 ThyssenKrupp Robins, USA ...... +1 (303) 793-2657 San-Con Industries Inc, USA ...... +1 (419) 294-5609 Strata Safety Products LLC, USA ...... +1 (770) 321-2500 US Rubber Corp...... +1 (800) 872-3587 Schenck Process, USA ...... +1 (440) 543-6000 Van Der Graaf, CAN...... +1 (905) 793-8100 Seetech, LLC, USA ...... +1 (304) 769-3010 Veyance Technologies Inc/ Goodyear Stedman, USA ...... +1 (800) 262-5401 Engineered Products, USA ...... +1 (888) 899-6354 Steinert US, LLC, USA ...... +1 (800) 595-4014 Cranes & Lifts Stock Equipment Co, USA ...... +1 (440) 543-6000 All Erection & Crane Rental Corp...... +1 (800) 232-4100 Strongwell, USA...... +1 (276) 645-8000 Strata Worldwide LLC, USA...... +1 (800) 691-6601 Tabor Machine Co, USA ...... +1 (304) 431-4100 Strictly Business Computer, USA...... +1 (888) 529-0401 Crushers Taggart Global, LLC, USA ...... +1 (724) 754-9800 SYColeman Corp, USA ...... +1 (703) 293-7813 AUBEMA Crushing Technology GmbH, GER+49 22 61 40 94-0 Tema Isenmann, Inc, USA ...... +1 (859) 252-0613 TESSCO Technologies, USA ...... +1 (800) 472-7373 Continental Crushing & Conveying, USA ..+1 (205) 487-6492 WesTech Engineering, USA ...... +1 (801) 265-1000 TR Minecom, AUL...... +61-3-9896 3000 Wright Concrete & Construction Inc, USA +1 (800) 670-6965 Tunnel Radio of America, USA ...... +1 (541) 758-5637 Victor Products USA, USA ...... +1 (724) 776-4900 Coal Transportation

AEP River Operations, USA ...... +1 (636) 530-2172 Conveyor Systems Gundlach Equipment Corp, USA ...... +1 (618) 233-7208 Alabama Port Authority, USA ...... +1 (251) 441-7200 Anker-Flexco, USA ...... +1 (800) 323-3444 Joy Mining Machinery, USA ...... +1 (724)-779-4500 American Commercial Lines, USA ...... +1 (812) 288-0100 Apex Bulk Technology, Inc, USA ...... +1 (270) 994-4329 McLanahan Corp, USA...... +1 (814) 695-9807 Appalachian Timber Services, USA ...... +1 (304) 765-7393 ASGCO-Complete Conveyor Solutions, USA ...... +1 (800) 344-4000 MMD Mineral Sizing, USA ...... +1 (423) 884-6100 Crounse Corp, USA ...... +1 (606) 564-6843 Beumer Group GmbH & Co.KG ...... +49 02521 24-0 Ingram Barge, USA ...... +1 (615) 298-8200 CAT Global Mining, USA...... +1 (309) 675-1000 JK-CO, USA ...... +1 (419) 422-5240 Clasic Conveyor, USA...... +1 (724) 459-5261 Kinder Morgan, USA...... +1 (713) 369-9000 Claudius Peters Projects GmbH, USA...... +1 (972) 386-4451 Port Corpus Christi, USA ...... +1 (361) 882-5633 Cobra America LLC, USA ...... +1 (866) 768-9700 Pennsylvania Crusher Corp, USA ...... +1 (610) 544-7200 River Consulting, USA ...... +1 (614) 890-3456 Conflow Inc, USA...... +1 (724) 746-0200 Sandvik Mining & Construction, USA...... +1 (404) 589-3800 Sennebogen LLC, USA ...... +1 (704) 347-4910 Conveyor Services Corp, USA ...... +1 (304) 855-2860 ThyssenKrupp Inc, GER...... +49 201 844 0 Trinity Industries, USA...... +1 (214) 631-4420

Two Rivers Authority, USA ...... +1 (406) 665-9274 Diesel Engines CAT Global Mining, USA...... +1 (309) 675-1000 Communications & Tracking Douglas Manufacturing, USA ...... +1 (205) 884-1200 Cummins Power Generation, USA ...... +1 (812) 377-5000 3D-P, USA ...... +1 (800) 955-93DP FAM Forderanlagen Magdeburg, GER ...... +49 391 6380 - 0 John Deere Power Systems, USA ...... +1 (800) JD-ENGINE Active Control Technology Inc, CAN ...... +1 (905) 670-5500 Fenner Dunlop Americas, USA ...... +1 (404) 297-3115 MTU, USA ...... +1 (313) 592-7000 AFL Telecommunications, USA...... +1 (800) 235-3423 Flexco, USA ...... +1 (800) 323-3444 Republic Diesel, Inc, USA ...... +1 (502) 561-2200 Amphenol Fiber Systems, USA ...... +1 (800) 472-4225 FMC Technologies, USA ...... +1 (800) 356-4898 Becker Mining America, USA ...... +1 (304) 736-9833 Drilling & Blasting Innoveyor Inc, USA...... +1 (757) 485-0500 Becker Mining Systems GmbH, GER ...... +49 6897857232 Atlas Copco Drilling Solutions LLC, USA ..+1 (972) 496-7400 Joy Mining Machinery, USA ...... +1 (724)-779-4500 Carroll Engineering Co, USA ...... +1 (877) 9-MINERS Bauer Maschinen GmbH, GER ...... +49 8252 97-0 Macquarie Mfg Pty Ltd, AUL...... +61 (0)249 753 711 CSE Corp, USA...... +1 (800) 245-2224 CAT Global Mining, USA...... +1 (309) 675-1000 Martin Engineering, USA ...... +1 (309) 594-2384 GAI-Tronics, USA ...... +1 (800) 492-1212 Dyno Nobel, USA ...... +1 (801) 328-6477 Mine Drives, USA...... +1 (814) 449-7578 Helicomm, USA ...... +1 (858) 638-0850 GeoSonics, Inc, USA...... +1 (724) 934-2900 PEBCO Inc, USA...... +1 (270) 442-1996 Intec Video Systems, USA ...... +1 (949) 859-3800 Kuriyama of America, Inc, USA ...... +1 (847) 755-0360 Phoenix Conveyor Belt Systems, GER ...... +49 40 7667 2205

July 2012 www.coalage.com 57 buyers guide 2012 continued

REIChdrill, USA ...... +1 (814) 342-5500 Drives Task Force Tips, USA ...... +1 (800) 348-2686 Sandvik Mining & Construction, USA...... +1 (404) 589-3800 Motion Industries Co-op (Baldor), USA ....+1 (205) 956-1122 Wm. Steinen Mfg Co, USA ...... +1 (973) 887-6400 Sauls Seismic, Inc, USA...... +1 (205) 592-2466 Dust Control Education Shaft Drillers Int’l, USA ...... +1 (800) 331-0175 AKJ Industries, Inc, USA...... +1 (239) 939-1696 Missouri University of Science T&T Carbide, USA ...... +1 (618) 439-7253 BWI Eagle, Inc, USA...... +1 (724) 283-4681 & Technology, USA...... +1 (800) 522-0938 Target Drilling, Inc, USA ...... +1 (412) 384-2292 Chemstream, Inc, USA...... +1 (814) 629-7118 Penn State Fayette, USA ...... +1 (724) 430-4100 Terex Reedrill, USA ...... +1 (972) 265-7110 Enssolutions, USA ...... +1 (877) 520-6767 Southern Illinois University Varel Int’l, USA ...... +1 (972) 242-1160 Hi-Vac Corp, USA ...... +1 (740) 374-2306 Coal Research Center, USA ...... +1 (618) 536.5521 Spraying Systems Co...... +1 (800) 95-SPRAY Engineers/Consultants AEP River Consulting, USA ...... +1 (614) 716-1000 Alpha Engineering Services, USA...... +1 (304) 255-4131 Anderson & Schwab, USA ...... +1 (212) 758-6800 Ardaman & Associates, Inc, USA ...... +1 (407) 855-3860 BMT WBM Americas, USA ...... +1 (303) 792-9814 Boyce, Graybeal & Fayre, USA ...... +1 (304) 683-3500 Call & Nicholas Instruments Inc, USA ...... +1 (520) 670-9774 CCC Group, Inc, USA ...... +1 (210) 661-4251 CDG Engineers, USA ...... +1 (314) 781-7770 Centry Constructors & Engineers, USA...... +1 (801) 582-2002 Coal Services Pty Ltd, AUL ...... +61 (02) 8270 3200 Coalfield Services, USA ...... +1 (276) 228-3167 Competitive Enterprise Institute, USA ...... +1 (202) 331-1010 Consero Inc, USA...... +1 (804) 359-8448 Cowin & Co, USA ...... +1 (205) 945-1300 D’Appalonia, USA ...... +1 (412) 856-9440 David Stanley Consultants, USA ...... +1 (304) 534-3871 Desko Enterprises, Inc, USA...... +1 (724) 537-7401 DSI Underground Systems Inc, USA ...... +1 (801) 973-7169 Farnham & Pfile Engineering, Inc, USA ....+1 (724) 653-1010 GAI Consultants, USA ...... +1 (304) 926-8100 Geotech Drilling, USA ...... +1 (250) 962-9041 Gibbs Associates, USA...... +1 (303) 444-6032 Grosvenor Engineering, USA ...... +1 (303) 798-0181 Hatch Mott MacDonald, USA ...... +1 (412) 497-2900 John Sample Associates, USA ...... +1 (718) 625-7107 John T Boyd Co, USA ...... +1 (724) 873-4400 Kinane Engineering, Inc, USA ...... +1 (623) 825-5546 L J Hughes & Sons, USA...... +1 (304) 872-1111 L Robert Kimball & Associates, USA ...... +1 (814) 472-7700 Liberty Mining Consultants, USA ...... +1 (859) 936-5588

Marshall Miller & Associates, USA ...... +1 (276) 322-5467 Marston & Marston, Inc, USA...... +1 (314) 984-8800 Martin Consulting ...... +1 (304) 521-2908 Micromine Ltd, USA...... +1 (604) 646-8924 Minasco Australia Pty Ltd, AUL ...... +61-3-9740 8933 Norwest Mine Services Inc, USA...... +1 (801) 539-0044 Outotec Oyj, USA ...... +1 (904) 353-3681 Pace Global, USA...... +1 (703) 818-9100

58 www.coalage.com July 2012 buyers guide 2012 continued

One Eye Industries, CAN ...... +1 (403) 242-4221 Firefighting Phoenix Process Equipment, USA...... +1 (502) 499-6198 Kidde Fire Systems, USA ...... +1 (508) 881-2000 Schroeder Industries Inc, USA ...... +1 (724) 318-1100 Phoenix First Response, USA ...... +1 (800) 516-4266 Seebach America Inc, USA...... +1 (304) 720-3746 Spraying Systems Co, USA ...... +1 (800) 95-SPRAY

Phoenix Process Equipment, USA ...... +1 (502) 499-6198 Seetech, LLC, USA ...... +1 (304) 769-3010 USF Equipment & Services Ltd, USA ...... +1(903) 753-3901 Weatherford Int’l, USA...... +1 (713) 580-9700 Pincock Allen & Holt, USA ...... +1 (303) 986-6950 Finance RAG Mining Solutions GmbH, GER ...... +49 6897857319 CIT Equipment Finance, USA ...... +1 (215) 854-6434 Fleet Management/Dispatch Systems Raw Materials Group, SWE ...... +46 87440065 Resource Capital Funds, USA ...... +1 (720) 946-1444 Leica Geosystems Inc, USA ...... +1 (770) 326-9500 Richwood, USA ...... +1 (304) 525-5436 MinVu Pty Ltd, AUS...... +61 7 3255 2333 Runge Ltd, AUL ...... +61 7 3100 7200 Runge Mining Inc, CAN ...... +1 (403) 217-4981 Runge, USA ...... +1 (303) 986-6950 Schneider Electric, USA...... +1 (847) 397-2600 Shaft Drillers Int’l, USA ...... +1 (800) 331-0175 Skelly & Loy, USA...... +1 (800) 892-6532 Specialized Career Search, USA...... +1 (610) 351-4322 SRK Consulting (UK) Ltd, UK ...... +44 2920 348150 Stagg Resources Consultants, USA ...... +1 (304) 776-6660 Stolar Research Corp, USA ...... +1 (575) 445-3607

Strata Mine Services, USA ...... +1 (770) 321-2500 Summit Engineering, USA ...... +1 (606) 432-1447 Trinity Consultants, USA ...... +1 (800) 229-6655 Tymark, LLC, USA ...... +1 (518) 489-8950 Weir Int’l, USA ...... +1 (630) 968-5400 White Engineering, USA...... +1 (800) 220-2097 Wood Mackenzie, USA ...... +1 (303) 425-5025 WSP Environment & Energy, UK ...... +44 (0)20 7314 5000

Environmental Abanaki Corp, USA ...... +1 (440) 543-7400 Abutec LLC, USA ...... +1 (770) 846-0155 CiDRA Minerals Processing, Inc, USA...... +1 (203) 265-0035 Environmental Stabilization Solutions, USA ...... +1 (623) 934-6767 GEC Drilling ...... +1 (478) 757-1606 GSE Lining Technology, USA ...... +1 (800) 435-2008 Hi-Vac Corp, USA ...... +1 (740) 374-2306

Phoenix Process Equipment, USA ...... +1 (502) 499-6198 Strata Safety Products LLC, USA ...... +1 (770) 321-2500 U.S. EPA Coalbed Methane Outreach Program, USA...... +1 (781) 674-7313 WSP Environment & Energy, UK ...... +44 (0)20 7314 5000

Filters AirFlow Catalyst Systems, USA ...... +1 (585) 295-1510 Donaldson Co, USA ...... +1 (952) 887-3300 Kaydon Filtration, USA...... +1 (706) 884-3041

July 2012 www.coalage.com 59 buyers guide 2012 continued

Modular Mining Systems Inc, USA ...... +1 (520) 746-9127 Hode Lumber Co, USA ...... +1 (419) 753-2263 GMS Mine Repair & Maintenance, Inc, USA ...... +1 (301) 334-8186 Marcus & Millichap, USA...... +1 (904) 565-2919 Hausner Hard Chrome Inc, USA ...... +1 (270) 684-2279 General Contractors Resource Land Holdings, LLC, USA ...... +1 (719) 633-1505 Hedweld USA Inc, USA ...... +1 (208) 755-2976 ANV Group Ltd, GER...... +495 504-08-01 HMC, USA ...... +1 (866) 990-9462 Beaver Steel Services, Inc, USA ...... +1 (412) 429-8860 Law Firms IPD, LLC, USA ...... +1 (310) 530-1900 Gasbarre Products, Inc, USA ...... +1 (814) 371-3015 Bailey & Glasser, LLC, USA ...... +1 (304) 594-0087 L&H Industrial, USA...... +1 (307) 682-7238 GMS Mine Repair & Maintenance, Inc, USA ...... +1 (301) 334-8186 Dinsmore & Shohl, LLP ...... +1 (513) 977-8200 Lawson Products, USA...... +1 (866) 837-9908 Rock & Coal Construction, Inc, USA...... +1 (304) 683-5600 Jackson Kelly PLLC ...... +1 (304) 340-1000 Layfield Poly Films Ltd, CAN ...... +1 (604) 275-5588 Patton Boggs LLP, USA ...... +1 (202) 457-6000 Guns Materion Brush Performance Alloys, USA..+1 (216) 486-4200 Spilman Thomas & Battle, USA ...... +1 (800) 967-8251 Henry Repeating Arms, USA...... +1 (201) 858-4400 Monitek, Inc, USA ...... +1 (307) 685-2566 Lighting MPI, USA ...... +1 (412) 664-7788 Haul Roads Allmand Bros, Inc, USA ...... +1 (308) 995-4495 NAES Corp., USA ...... +1 (425) 961-4700 Big R Mfg., USA...... +1 (800) 234-0734 KH Controls, USA...... +1 (724) 459-7474 OEM Retrofit Inc, USA ...... +1 (606) 437-1656 Hoists Shat-R-Shield, USA...... +1 (800) 223-0853 Partsmaster, USA ...... +1 (800) 336-0450 FKC-Lake Shore, USA...... +1 (877) 554-8600 Sioux Rubber & Urethane, USA ...... +1 (712) 252-3257 Longwall Mining Equipment Rouster WRR, USA...... +1 (800) 595-2747 Stellar Industries, USA ...... +1 (641) 923-3741 Advanced Cutting Systems, USA ...... +1 (260) 423-3394 Siemag GmbH, GER ...... +49 2738210 T.F. Hudgins, USA ...... +1 (713) 682-3651 Capital Group Fasing Plc, POL ...... +48 32/ 735 00 00 Thern Inc, USA...... +1 (507) 454-2996 CAT Global Mining, USA...... +1 (309) 675-1000 Mechanical Power Transmission Hydraulic Power Systems Chain Connection, USA ...... +1 (724) 539-8222 Cone Drive, USA ...... +1 (888) 994-2663 The Cypher Co, USA...... +1 (724) 325-3900 Eickhof Bergbautechnik GmbH, GER ...... +49 234 975-0 EES Gear Gmbh, SWI ...... +41 41 755 09 54 Flodraulic Group, Inc, USA...... +1 (480) 921-5440 Eickhoff Corp, USA ...... +1 (412) 788-1400 Emerson Power Transmission, USA ...... +1 (630) 561-1431 Gates Corp, USA ...... +1 (800) 366-3128 Famur Group, POL ...... +48 32 359 63 00 Force Control Industries, USA ...... +1 (513) 868-0900 Gates Fluid Power Division, USA ...... +1 (303) 744-1911 Hauhinco, USA ...... +1 (724) 789-7050 Hansen Gearboxes, USA...... +1 (304) 262-5860 Hose Solutions, USA ...... +1 (480) 607-1507 Hansen Transmission, Inc, USA...... +1 (757) 478-3605 Kuriyama of America, Inc, USA ...... +1 (847) 755-0360 Inpro/Seal Co, USA ...... +1 (800) 447-0524 Manuli Hydraulics (Americas) Inc, USA ....+1 (724) 778-3380 Jahnel Kestermann, GER ...... +49 0234 339-249 Marco Systems, GER...... +49 8131 5161 0 HUESKER, Inc, USA ...... +1 (704) 588-5500 Kuriyama of America, Inc, USA ...... +1 (847) 755-0360 Mercia Int’l Products Ltd, USA...... +1 (412) 787-2400 Hydrowatt AG, SWI ...... +41 (0)52 624 53 22 Magnetek, USA ...... +1 (800) 288-8178 North American Hydraulics, USA ...... +1 (225) 751-0500 Joy Mining Machinery, USA ...... +1 (724) 779-4500 Manuli Hydraulics (Americas) Inc, USA ....+1 (724) 778-3380 Parker Hannifin Corp, USA...... +1 (216) 896-3000 K.B.P. Kettenwerk Becker-Pruente GmbH - Material Control Inc, USA ...... +1 (630) 892-4274 R&M Fluid Power, USA...... +1 (330) 758-2766 Capital Group FASING Plc, GER...... +49 2363 7334 15 Midwest Brake, USA ...... +1 (586) 775-3000 Ryco Hydraulics, USA...... +1 (281) 821-4100 Longwall Associates, USA ...... +1 (276) 646-2004 Mine Drives, USA...... +1 (814) 449-7578 System Seals, USA...... +1 (800) 465-8835 Longwall Mining Services, USA ...... +1 (724) 816-7871 Rexnord Industries, LLC, USA ...... +1 (414) 643-3000 US Rubber Corp, USA...... +1 (936) 756-1977 Longwall Services Inc, USA ...... +1 (724) 228-9898 Security Locknut, USA ...... +1 (847) 970-4050 Wojanis Supply Co, USA...... +1 (800) 345-9024 Macquarie Mfg Pty Ltd, AUL...... +61 (0)249 753 711 Superbolt Inc, USA ...... +1 (800) 345-BOLT Wooster Hydrostatics Inc, USA...... +1 (330) 263-6555 Marco North America, USA...... +1 (304) 733-0977 Svendborg Brakes, DEN ...... +45 63 255 255 Marco Systems, GER...... +49 8131 5161 0 Tribco, Inc, USA...... +1 (216) 486-2000 Instrumentation Seetech, LLC, USA ...... +1 (304) 769-3010 Voith Turbo GmbH and Co KG, GER ...... +49 (7951) 32-409 BinMaster, USA ...... +1 (402) 434-9102 Stolar Horizon, USA ...... +1 (575) 445-3607 Wolfgang Preinfalk GmbH, GER...... +49 (0) 6894 3101 0 Fluke Corp, USA...... +1 (425) 347-6100 Sunkun American Mining Equipment, USA+1 (858) 353-5335 Media Insurance Tiefenbach North America, USA...... +1 (304) 368-9440 Mining Media Int’l, USA...... +1 (303) 283-0640 American Mining Insurance Co ...... +1 (205) 870-3535 United Mining Equipment, USA ...... +1 (724) 586-0195 ZMJ, CHN ...... +86 371-67891026 Methane Drainage Laboratories KSD Ent LLC - Methane Busters, USA ...... +1 (304) 624-7452 Certified Laboratories, USA ...... +1 (972) 428-0591 Maintenance Methane Recovery Solutions, LLC, UK ..+44 (0) 161 483 1435 Clark Testing Services, USA...... +1 (269) 697-8632 American Utility Metals, USA...... +1 (719) 597-2423 U.S. EPA Coalbed Methane Hazen Research, Inc, USA ...... +1 (303) 279-4501 AZZ Galvanizing, USA ...... +1 (817) 810-0095 Outreach Program, USA...... +1 (781) 674-7313 Novatek, USA...... +1 (724) 288-6945 Beaver Steel Services, Inc, USA ...... +1 (412) 429-8860 Welldog, USA...... +1 (307) 742-6340 Polaris Laboratories, USA ...... +1 (317) 808-3750 Bel-Ray Company, USA ...... +1 (732) 938-2421 Schweitzer Engineering Laboratories, USA ...... +1 (509) 332-7990 Bortech Corp, USA...... +1 (603) 358-4030 Mine Supplies SGS North America, USA ...... +1 (410) 355-1958 CMA, LLC/Double Coin Tires, USA ...... +1 (626) 301-9575 3M Co, USA ...... +1 (651) 737-1538 Expander Americas, Inc, USA...... +1 (928) 646-3500 Applied Industrial Technologies, USA ...... +1 (216) 426-4000 Land Companies FLIR Systems, Inc, USA ...... +1 (800) 727-3547 ASGCO-Complete Conveyor Solutions, USA ...... +1 (800) 344-4000 The 84 Group, Inc, USA ...... +1 (412) 788-3939 Flow Ezy Filters Inc, USA ...... +1 (734) 665-8777 Becker Wholesale Mine Supply, USA ...... +1 (724) 515-4993 Appalachian Timber Services, USA ...... +1 (304) 765-7393 Gasbarre Products, Inc, USA ...... +1 (814) 371-3015 Bluefield Mfg., USA ...... +1 (800) 445-4461 Chartwell Int’l, USA...... +1 (740) 532-7155

60 www.coalage.com July 2012 buyers guide 2012 continued

Brady Mining & Construction, USA ...... +1 (314) 872-8192 RM Wilson Co., Inc, USA ...... +1 (800) 624-5460 Graco, USA ...... +1 (800) 533-9655 Cattron Group Int’l, USA ...... +1 (724) 962-3571 Strata Mine Services, USA ...... +1 (770) 321-2500 Lubrizol Corp, USA...... +1 (440) 943-4200 Chain Connection, USA ...... +1 (724) 539-8222 Swanson Industries, USA...... +1 (800) 327-6203 Mantek, USA ...... +1 (800) 527-7850 Cincinnati Mine Machinery, USA ...... +1 (513) 522-7777 Thermo-Tech Heating Devices, Inc, USA ..+1 (877) 693-7693 Quaker Chemical, USA...... +1 (610) 832-4000 Thiele GmbH & Co KG, GER ...... +49 2371 / 947-0 Reserve Systems Inc, USA ...... +1 (661) 256-2275 Timken Co, USA...... +1 (330) 471-4392 Spinner II Products, USA ...... +1 (713) 682-3651 United Central Industrial Supply, USA ...... +1 (276) 466-0511 Piping Douglas Manufacturing, USA ...... +1 (205) 884-1200 Wire Rope Corp of America, Inc, USA ...... +1 (412) 373-6122 Altoona Pipe and Steel Supply, USA...... +1 (814) 944-1631 Dry Systems Technologies, USA ...... +1 (630) 427-2051 Worthington Products, USA ...... +1 (330) 452-7400 CertainTeed Corp, USA ...... +1 (610) 341-7825 Erlau AG, USA ...... +1 (319) 294-0001 Zhuzhou Cemented Carbide Works, USA ..+1 (734) 302-0125 CF Ultra Tech, USA ...... +1 (262) 284-7800 Fairmont Supply Co, USA...... +1 (724) 514-3900 Motors Grinnell Products, USA ...... +1 (215) 362-0700 Fenner Dunlop Americas, USA ...... +1 (404) 297-3115 Baldor Electric Co, USA ...... +1 (479) 646-4711 Indumar Products, USA ...... +1 (713) 977-4100 FMC Technologies, USA ...... +1 (800) 356-4898 Mohler Technology, Inc, USA ...... +1 (812) 897-2900 Jabo Supply Corp, USA...... +1 (304) 736-8333 Gardner Paint Services, USA ...... +1 (423) 928-8351 SIEMAG Inc, USA ...... +1 (518) 966-4650 Lee Supply Co, USA ...... +1 (724) 483-3543 Garlock Klozure, USA ...... +1 (866) 556-9873 SIEMAG TECBERG GmbH, GER ...... +49 2773 9161-0 Ultra Tech Pipe, USA ...... +1 (800) 626-8243 Garlock Rubber Technologies, USA ...... +1 (870) 239-4051 T&N Electric Motors Exchange Inc, USA ....+1 (800) 513-7931 Harrington Hoists, USA ...... +1 (800) 233-3010 Power Systems Yost Electric, USA ...... +1 (785) 637-5454 Hilti, USA ...... +1 (866) 445-8827 ABB Inc, USA...... +1 (970) 282-7734 Hytorc, USA ...... +1 (800) 367-4986 Oils & Lubricants AmerCable, USA ...... +1 (800) 643-1516 Kuriyama of America, Inc, USA ...... +1 (847) 755-0360 Bel-Ray Company, USA ...... +1 (732) 938-2421 Ampcontrol Pty Ltd, AUS...... +61 2 4961 9000 Lewis-Goetz & Co Inc, USA ...... +1 (304) 252-6203 BP, USA...... +1 (800) 333-3991 Arizona Electrical Apparatus, USA...... +1 (520) 622-7802 McNichols Co., USA ...... +1 (877) 884-4653 Castrol Industrial North America Inc, USA +1 (877) 641-1600 Avtron Mfg, USA ...... +1 (216) 573-7600 Pioneer Supply, USA ...... +1 (412) 471-5600 CC Jensen Inc, USA ...... +1 (206) 789-1710 Cavotec USA, USA ...... +1 (704) 873-3009 ConocoPhillips Lubricants, USA...... +1 (303) 649-4080 CW Electric, Inc, USA...... +1 (606) 928-2074 D-A Lubricant Company, Inc, USA ...... +1 (800) 645-5823 Diversified Energy, USA...... +1 (480) 507-0297 DA Stuart GmbH, GER ...... +49 2 02/60 70 Draka Industrial Cable GmbH, NET ...... +31 (0)20 56 89 865 Richwood, USA ...... +1 (304) 525-5436 Fuchs Lubricants, USA ...... +1 (724) 627-3200 Flanders Electric, USA...... +1 (812) 867-7421

62 www.coalage.com July 2012 buyers guide 2012 continued

Fluke Corp, USA...... +1 (425) 347-6100 Godwin Pumps, USA ...... +1 (856) 467-3636 GE Transportation, USA ...... +1 (814) 875-5257 Grindex AB, SWE...... +46 86066600 General Cable Corp, USA ...... +1 (800) 243-8020 Grindex Pumps, USA ...... +1 (708) 532-9988 Innovative Utility Products, USA ...... +1 (479) 410-2098 Hauhinco, USA ...... +1 (724) 789-7050 Intermountain Electronics, Inc, USA ...... +1 (435) 637-7160 Industrial Service & Electronics Inc, USA..+1 (270) 830-0074 Joslyn Clark Controls, USA...... +1 (800) 390-6405 ITT Flygt AB, SWE ...... +46 (8) 475-600 Nalco Co, USA...... +1 (630) 305-1000 Kuriyama of America, Inc, USA ...... +1 (847) 755-0360 ITT Water & Wastewater U.S.A., Inc, USA ..+1 (203) 380-4700 Research Line Power, USA ...... +1 (276) 466-8200 Kamat Pumpen GmbH, GER ...... +49 (0) 23 02 / 89 03 - 0 CDC / NIOSH, USA ...... +1 (800) 232-4636 Midsun Specialty Products Inc, USA ...... +1 (860) 378-0111 Megator Corp, USA ...... +1 (412) 963-9200 Missouri University of Science Nanofilm, USA ...... NEED PHONE # Mersino Dewatering...... +1 (810) 658-3472 & Technology, USA...... +1 (800) 522-0938 Plymouth Rubber, USA...... +1 (781) 828-0220 Modern Pump & Equipment Inc, USA...... +1 (717) 444-2200 Southern Illinois University Preco Electronics, USA...... +1 (866) 977-7326 Odesse Pumpen, GER ...... +49 (0) 3949 932-0 Coal Research Center, USA ...... +1 (618) 536.5521 Saminco Inc, USA ...... +1 (239) 561-1561 RePower Mining Int’l, Inc, USA ...... +1 (205) 483-0350 Schneider Electric, USA...... +1 (847) 397-2600 Ritz Pumpenfabrik GmbH & Co KG, GER ...... +49 7171609286 Rock Dust Siemens AG, GER...... +49 (9131) 723-327 Service Pump & Supply Inc, USA ...... +1 (304) 429-6731 Blastcrete Equipment Co, USA...... +1 (256) 235-4867 Siemens Industry, Inc, USA ...... +1 (770) 740-3480 Thompson Pump & Mfg Co, Inc, USA ...... +1 (800) 767-7310 Carmeuse Lime & Stone, USA ...... +1 (412) 995-5500 SMC Electrical Products, Inc, USA ...... +1 (304) 736-8933 US Tsubaki, USA ...... +1 (847) 459-9500 DSI Underground Systems Inc, USA ...... +1 (801) 973-7169 Tele-Fonika Cable Americas, USA ...... +1 (630) 406-9000 Watson Marlow, USA ...... +1 (800) 282-8823 Hafco, USA ...... +1 (201) 447-0433 TJB Inc, USA ...... +1 (440) 327-6154 Weir Minerals-Slurry Group, USA ...... +1 (608) 221-2261 Roof Control TMEIC, USA ...... +1 (540) 283-2300 Xylem Dewatering Solutions (Godwin), USA ..+1 (856) 467-3636 DSI Underground Systems Inc, USA ...... +1 (801) 973-7169 Victor Products USA, USA ...... +1 (724) 776-4900 Reagents DU Technologies, USA ...... +1 (201) 729-0070 Wabash Power Equipment, USA...... +1 (800) 704-2002 Arclin, CAN ...... +1 (905) 712-0900 EMS Mining, USA...... +1 (513) 543-9721 Wilson Creek Energy LLC, USA ...... +1 (814) 443-4600 Chemstream, Inc, USA...... +1 (814) 629-7118 FiReP North America Inc, USA ...... +1 (905) 686-7907 Pumps CyPlus GmbH, GER ...... +49 6181-59-6934 MICON, USA...... +1 (877) 746-9911 Arthur Habermann GmbH & Co.KG, GER ....+49 2302 /6606-0 Roof Support Chesterton Co, USA ...... +1 (781) 438-7000 Camber Corp, USA...... +1 (724) 933-6040

July 2012 www.coalage.com 63 buyers guide 2012 continued

ChemGrout, Inc, USA...... +1 (708) 354-7112 Sampling DSI Mining Americas, USA...... +1 (801) 973-7169 HSS Sampling Div (McLanahan), USA ...... +1 (814) 695-9807 DSI Underground Systems Inc, USA ...... +1 (630) 739-1100 James A Redding Co, USA ...... +1 (814) 444-3452 Gunite Construction Co, USA ...... +1 (740) 676-2172 Scales Cardinal Scale Mfg Co., USA ...... +1 (417) 673-4631 Thermo Fisher, Process Inst., USA ...... +1 (858) 882-1358

Scrap-yard Services HUESKER, inc, USA ...... +1 (704) 588-5500 M&M Recycling, USA ...... +1 (404) 516-4869 J.H. Fletcher & Co, USA ...... +1 (304) 525-7811 Screens Jennmar Corp, USA ...... +1 (412) 963-9071 Marco Concrete Lifting, USA ...... +1 (866) 886-2726 Minova USA, USA...... +1 (502) 868-6224

Derrick Corp, USA ...... +1 (716) 683-9010 Duraline LLC, USA, USA ...... +1 (412) 429-0335 Eriez Manufacturing Co...... +1 (814) 835-6000

Strata Worldwide LLC, USA...... +1 (800) 691-6601 CWS Industries Mfg Corp, CAN ...... +1 (604) 888-9008 Sub-Technical Inc, USA ...... +1 (724) 625-0008 Duratray Int’l Pty Ltd, AUL ...... +61 (3) 8761 2800 Safety Polydeck Screen Corp, USA ...... +1 (864) 579-4594 Duratray, USA ...... +1 (303) 256-6642 American Mine Research, USA...... +1 (276) 928-1712 Hitachi, CAN ...... +1 (519) 835-8507 Security Aqua Blox Emergency Drinking HMC, USA ...... +1 (866) 990-9462 Global Security & Engineering Water Solutions, USA...... +1 (866) 500-2782 Hoss Equipment, USA ...... +1 (972) 257-1244 Solutions, USA...... +1 (703) 708-1400 Avon Protection Systems, USA ...... +1 (410) 273-1161 IPD, LLC, USA ...... +1 (310) 530-1900 Imprints, USA ...... +1 (727) 535-9492 Bashlin Industries Inc, USA...... +1 (724) 458-8340 Komatsu America Corp, USA ...... +1 (847) 437-5800 BWI Eagle, Inc, USA...... +1 (724) 283-4681 Shaft Sinking L&H Industrial, USA...... +1 (307) 682-7238 CAB (Cambria County Assoc), USA ...... +1 (814) 472-5077 Frontier-Kemper Constructors, Inc, USA....+1 (812) 426-2741 LeTourneau Technologies, Inc, USA ...... +1 (903) 236-6598 CDC / NIOSH, USA ...... +1 (800) 232-4636 R.G. Johnson Company, Inc, USA ...... +1 (724) 222-6810 Liebherr Mining Equipment, USA ...... +1 (757) 245-5251 Cove Shoe, USA ...... +1 (800) 441-4319 Shaft Drillers Int’l, USA ...... +1 (800) 331-0175 P&H Mining Equipment, USA...... +1 (414) 671-7731 Dan Post Boot Company, USA ...... +1 (724) 561-3997 Philippi-Hagenbuch, Inc, USA ...... +1 (800) 447-6464 Software Draeger Safety Inc, USA...... +1 (412) 787-8383 REIChdrill, USA ...... +1 (814) 342-5500 Aspen Technology Inc, USA ...... +1 (281) 584-1945 Durable Documents, USA...... +1 (412) 221-6400 RWF Bron, CAN ...... +1 (519) 421-0036 Carlson Software, USA...... +1 (606) 564-5028 Hedweld USA Inc, USA ...... +1 (208) 755-2976 TowHaul Corp, USA ...... +1 (406) 388-3424 Coal Software and Systems, Inc, USA ...... +1 (304) 467-7856 Impact Safety Products, USA...... +1 (970) 241-8783 Trinity Specialty Products, Inc, USA...... +1 (210) 333-8222 Gemcom Software Int’l, USA ...... +1 (604) 684-6550 Lewis-Goetz & Co Inc, USA ...... +1 (304) 252-6203 Wirtgen GmbH, GER ...... +49 2645131744 MESA, Inc, USA ...... +1 (412) 921-6372 Matterhorn, USA ...... +1 (800) 441-4319 Micromine Ltd, USA...... +1 (604) 646-8924 Surveying MineARC Systems America LLC, USA ...... +1 (214) 337-5100 Predictive Compliance, USA ...... +1 (801) 994-6455 Appalachian Geophysical Surveys, USA ....+1 (800) 653-8119 NL Technologies, CAN ...... +1 (416) 425-6559 Appalachian Timber Services, USA ...... +1 (304) 765-7393 Oliver USA, USA...... +1 (406) 273-9060 Surface Mining (Collision Avoidance) GeoOne Inc, USA ...... +1 (614) 866-9010 On-Site Gas, USA ...... +1 (800) 559-8403 Advanced Mining Technologies, AUL...... +61 2 4389 2344 GKS Laser Design, USA ...... +1 (952) 884-9648 Predictive Compliance, USA ...... +1 (801) 994-6455 MinVu Pty Ltd, AUS...... +61 7 3255 2333 Ground Probe, USA ...... +1 (520) 393-8287 Red Wing Shoe Co, USA ...... +1 (800) 733-9464 Motion Metrics, USA ...... +1 (604) 822-5842 Rel-Tek Corp, USA ...... +1 (412) 373-6700 PreView Radar, USA...... +1 (208) 323-1000 Tires Agora Tire, USA ...... +1 (281) 764-9550 Surface Mining Equipment American Tire Corp, USA ...... +1 (626) 698-0002 A M King, USA ...... +1 (800) 334-6699 Bedelco, BEL ...... +32 (4) 330-1860 AGM USA Inc, USA ...... +1 (480) 289-3400 Bridgestone/Firestone Off Road Tire Co., USA....+1 (615) 937-5733 Bundy Auger Mining Inc, USA ...... +1 (304) 872-5497 CMA, LLC/Double Coin Tires, USA ...... +1 (626) 301-9575 CAT Global Mining, USA...... +1 (309) 675-1000 Strata Worldwide LLC, USA...... +1 (770) 321-2500 Eurotire, USA...... +1 (973) 575-0080 CCC Group, Inc, USA ...... +1 (210) 661-4251 Tapeswitch, USA ...... +1 (631) 630-0442 Global Tyres, USA ...... +1 (252) 331-3414 TP Mfg, USA ...... +1 (978) 422-3400 Magic Tire Sales, USA ...... +1 (210) 495-7143 Tuff Knucks Gloves (Lewellyn Safety), USA ...... +1 (812) 699-1601 Michelin Earthmover Tires, USA...... +1 (877) 574-8473 Turtle Plastics, USA...... +1 (440) 282-8008 RIMEX Supply Ltd, CAN ...... +1 (604) 888-0025 Columbia Steel Casting, USA ...... +1 (503) 286-0685

64 www.coalage.com July 2012 buyers guide 2012 continued

SETCO Tires, USA ...... +1 (800) 634-2381 Underground Transportation Xtreme OTR Tire, USA ...... +1 (800) 444-5001 A.L. Lee Corp, USA...... +1 (304) 934-5361 Battery Filling Systems of the Americas, USA ....+1 (336) 714-0448 Tools SMT Scharf GmbH, GER ...... +49 2381960306 Stanley Proto, USA...... +1 (800) 800-TOOL Utility Equipment Training Man & Material Lift Engineering, USA ...... +1 (414) 486-1760 5DT, Inc, USA ...... +1 (949) 450-9044 Beltek Inc, USA ...... +1 (307) 325-6776 Valves Employee Development, USA ...... +1 (480) 483-3224 Red Valve Co, Inc, USA ...... +1 (412) 279-0044 Immersive Technologies, AUL ...... +61 8 9347 9000 Ventilation MinVu Pty Ltd, AUS...... +61 7 3255 2333 BASF, SWI ...... +41 (58) 958-2700 Missouri University of Science DU Technologies, USA ...... +1 (201) 729-0070 & Technology, USA...... +1 (800) 522-0938 Howden Buffalo, USA...... +1 (330) 339-1111 Penn State Fayette, USA ...... +1 (724) 430-4100 Kennedy Metal Products, USA ...... +1 (217) 287-7231 Strata Safety Products LLC, USA ...... +1 (770) 321-2500 MICON, USA...... +1 (877) 746-9911 Vista Training, USA ...... +1 (800) 942-2886 Mine Ventilation Services, Inc, USA ...... +1 (559) 452-0182 Trucks New York Blower, USA ...... +1 (630) 794-5700 Haulmax, AUL...... +61 3 6442 2166 Rel-Tek Corp, USA ...... +1 (412) 373-6700 Komatsu America Corp, USA ...... +1 (309) 672-7144 Schauenburg Flexadux, Corp, USA ...... +1 (970) 245-9400 Western Star Truck Sales, Inc, USA ...... +1 (313) 592-4229

Underground Mining Equipment Battery Watering Technologies (BWT), USA ...... +1 (877) 522-5431 BeteK Karl Simon GmbH & Co. KG, GER ..+49 (0) 7422 565-0 Brookville Equipment Corp, USA ...... +1 (814) 849-2000 Strata Mine Services, USA ...... +1 (770) 321-2500 CAT Global Mining, USA...... +1 (309) 675-1000 DaimlerChrysler, GER...... +49 711 17 0 Wear Materials Damascus Corp, USA...... +1 (276) 676-2376 American Utility Metals, USA...... +1 (719) 597-2423 Astralloy Steel Products Corp, USA ...... +1 (800) 633-6635 Bailey Parks Urethane, Inc, USA ...... +1 (901) 774-7930 Beaver Steel Services, Inc, USA ...... +1 (412) 429-8860 Douglas Manufacturing, USA ...... +1 (205) 884-1200 BeteK Karl Simon GmbH & Co. KG, GER ..+49 (0) 7422 565-0 Fairchild Int’l, USA ...... +1 (540) 726-2380 Brush Wellman Inc, USA ...... +1 (216) 486-4200 Getman/TerraPro, USA...... +1 (269) 427-5611 Ceramic Protection Corp, CAN ...... +1 (403) 250-0503 Hermann Paus Maschinenfabrik GmbH, GER +49 590370755 Damascus Steel, USA ...... +1 (724) 846-2770 Irwin Car and Equipment, USA ...... +1 (724) 864-8900 JH Fletcher & Co, USA ...... +1 (304) 525-7811 Joy Mining Machinery, USA ...... +1 (724) 779-4500 Kennametal Inc, USA...... +1 (800) 222-9327 marco Systemanalyse und Entwicklung GmbH, GER ..+49 8131 5161 0 Duraline LLC, USA, USA...... +1 (412) 429-0335 Metalcraft Mining Equipment Hardsteel, Inc, USA ...... +1 (205) 343-9100 & Rebuilders, Inc, USA ...... +1 (304) 846-2678 ITW Devcon ...... +1 (800) 933-8266 Pillar Mfg, USA ...... +1 (269) 628-5605 Kennametal Tricon Metals, USA...... +1 (800) 633-6054 Rouster WRR, USA...... +1 (800) 595-2747 Line-X Corp, USA...... +1 (714) 850-1662 S&S Concepts Inc, USA ...... +1 (303) 828-4604 Materion Brush Performance Alloys, USA..+1 (216) 486-4200 Sandvik Mining & Construction, USA...... +1 (404) 589-3800 Raptor Mining Products Inc, CAN...... +1 (780) 444-1284 Schopf Maschinenbau GmbH, GER ...... +49 (0)711/3 40 00-0 Richwood, USA ...... +1 (304) 525-5436 Shaft Drillers Int’l, USA ...... +1 (800) 331-0175 SAS Global Corp, USA ...... +1 (248) 414-4470 St Lawrence Steel Corp, USA ...... +1 (800) 837-3789 Superior Tire & Rubber Corp, USA ...... +1 (814) 726-0740 ThyssenKrupp Steel North America, USA ..+1 (251) 289-3000 US Rubber Corp, USA...... +1 (936) 756-1977 WEAR-Concepts, Inc, USA ...... +1 (816) 587-1923 Strata Worldwide LLC, USA...... +1 (770) 321-2500 Wire Rope T Machinery a.s., Czech Republic ...... +420 518 391 512 Samson, USA...... +1 (360) 384-4669

July 2012 www.coalage.com 65

market watch

An Observation about Exporting Coal to China

BY DR. SYD PENG

The U.S. Energy Information Administra- tion (EIA) forecast in 2012 the U.S. would produce 996.7 million tons of clean coal, 97.6 million tons or 8.91% less than 2011, and that consumption for coal-fired elec- tricity generation would be 808 million tons, 120 million tons or nearly 13% less than 2011 due to rising coal stockpiles from a mild winter, greater use by electri- cal utilities of inexpensive natural gas, and uncertainty in federal regulations. Against this unprecedented adverse envi- ronment, there has been a lot of talk in the media in the last few months about exporting excess coal to the energy-hun- gry Asian market, especially China to compensate for the shortfall of U.S. con- sumption. Is that a viable strategy, short- and long-term? Figure 1—Major coal producing regions and distribution systems. Red and gray blocks are producing regions China is estimated to produce and and blue arrows from the blocks indicate their distribution areas. Thick black lines are railroad. Purple arrows consume 3.6 billion raw metric tons (mt) are ocean shipping routes. of coal in 2012. About 64% of the produc- tion was from the north central region When it comes to trucking Chinese weeks, although there have been signs of a notably Inner Mongolia, Shanxi and coals, the scale in the Inner Mongolia bottom in recent weeks. Shaanxi (the Red Zone in Figure 1), which region is really beyond imagination. One At Qinhuandao, coal stockpiles have are located far from the central interior county in the province-line between reached 9.42 million mt (maximum capaci- and in particular southeast coastal Hubei and Inner Mongolia has more ty is 10.425 million mt) in early June, regions where electricity is in great than 20,000 50-ton coal trucks. They are exceeding the record set in November 2008 demand due to greater concentration of painted bright red. Long caravans of at the height of the world recession, and population and industry. A portion of the these red coal trucks stretch bumper-to- increasing at the rate of 800,000 mt/week. coals produced in this region were either bumper for up to several miles on the Even after special measures were imple- trucked in short or long distances to the Jin-Zhang Expressway (Beijing-to-Lasa, mented to relieve the stockpiling, the stock- consuming interior regions. And, close to Tibet). Passenger cars traveling on this pile remained at 877 million mt level in half of the total production is moved by a section of the expressway are very early July. Ships are rarely seen at the port combination of trucks and railroads to the stressed and extremely slow. Those long and many sales and ocean shipping con- port city of Qinhuangdao on the Gulf of lines of bumper-to-bumper red trucks tracts were not honored. Meanwhile stock- Bo Haiin on the Pacific Coast. From there are a magnificent sight if you are not in a piles of the electric utilities in the it is then loaded on ships to the southern hurry to get to your destination. consuming regions reached a new high of port cities like Shanghai, Ningbo, Xiamen China’s coal markets experienced a very more than 33 days—nearly twice the nor- and Kuangzhouor upstream through the depressing decade in the 1990s. The last 10 mal inventory. Stockpiles are also high at mighty Yangtse River to the central interi- years, however, are often referred to as many mine sites. Under normal conditions, or of Hubei and Hunan Provinces. These coal’s “Golden Ten Years” due to the ever all domestic coals reaching Qinhuangdao coal transportation routes represent the rising coal prices. During this “Golden Ten are quickly reloaded onto waiting ships great majority of coal movement in China. Years,” investing and engaging in coal min- that depart immediately for the southeast- Obviously it is by any measure a very long ing has been very popular and many “coal ern coastal region or central interior. haul and adds considerable cost to the barons” emerged. In recent months, how- Undoubtedly Qinhuangdao is the largest consumers in the populated and industri- ever, there have been frequent reports that coal port in the world, shipping 250 million alized southeastern coastal region. the “Golden Ten Years” may soon end. mt annually. Therefore, Qinhuangdao is a trend setter Beginning in April 2012, especially since There are reports that coal mines in and a barometer for the state of the May, coal prices have been declining across Inner Mongolia and Shanxi are reducing Chinese coal industry. the board continuously for the past nine or idling production, and lowering wages

68 www.coalage.com July 2012 market watch continued

small numbers of players. Consequently, supply and demand are more easily adjustable. Their price remains stable and firm. Obviously, simple supply and demand dictates that if the cost of domestic coals at the consuming regions is cheaper than or equal to that of import coals, imported coals will lose price advantage and import will decrease rapidly. When will this happen or will this ever happen? As expected, there are different opinions: The most optimistic one being that the amount of coal import even at an estimated 250 million mt in 2012 is minor considering the total con- sumption of around 3.6 billion mt. The opposite view is that production costs are usually in the range of $24-48/mt and that it may be difficult to reduce that cost Figure 2—Chinese coal imports 2008-2012. to sell it cheaper than the foreign import at the coastal region. Consequently, due to the drop in coal demand. There are elimination of import taxes on lignite (now importing lower priced foreign coals can several reasons for declining consump- all types of coals are import-tax free) have curtail the continuing price increase of tion: (1) The central government imple- created a cost structure for China’s domes- domestic coals. Conversely, if the import mented policies to tame inflation, thereby tic steam coals that is inferior to that of for- coal price rises following the recent rise slowing the rate of economic growth that eign coals. Simultaneously, in the world in oil price, the price differential between affected all manufacturing industries; (2) coal trade market, due to recession in the domestic and import coals shrinks lead- Recession in the Euro zone that accounts Euro zone, recent sharp decline in oil prices ing to slow down in import. In addition, for about one quarter of China’s export (because the coal price in international coal coal consumption depends on GDP market causes idling or closure of many trade follows closely the up and down cycle growth: since the 2012 rate of GDP factories that are the major consumer of of oil price), and energy consumption less growth in China is 7.5% vs. 9.2% in 2011 electricity. Coal-fired electricity power than expected in the rapidly increasing and 10.4% in 2010, the current situation plants consume more than 50% of coals energy consuming countries such as China, may persist until the rate of GDP growth and account for 80% of its fuel; (3) India and South Africa, world coal produc- is allowed to move upward. Therefore, it Unusually wet season in the south that tion has also exceeded demand causing coal is probably correct to say that lacking prompted more generation and use of price to slide dramatically. As a result, coals consistent data, coal import will contin- hydro power: and (4) Cheap imports of imported into China from Australia, ue to increase well into 2013. coals from Australia, Indonesia and the Indonesia and even the U.S. are cheaper in Taking all of that into consideration, it U.S. There are reports that U.S. coal com- the southeastern costal region than the must be pointed out that in a centrally- panies due to reduced domestic con- domestic coals from the north. controlled market economy, a new or sumption are selling cheap to gain export At the 10th China International Coal change in government policy can be market. One story stated that the Powder Conference held in Beijing, April 17-19, implemented anytime to change the River Basin (PRB) coal FOB at a Chinese 2012, many Chinese coal dealers signed trends quickly. For instance, the Ministry port was $75.20/ton, $55/ton less than the sales contracts with brokers from Australia, of Transportation is considering a pro- domestic coals. Similar cases have also Indonesia, Russia and the U.S. for import posal to control the “unusually large been reported for Australian coals. varying from 1 million mt to 10 million mt increase in coal import” within the Chinese coal imports increased steadily for delivery in the May-July period to meet framework of world trade agreement in recent years (See Figure 2), due to a com- the expected summer’s surging demand. because large stockpiles of coals at sea bination of the following factors: (1) the Unexpectedly within two months the price ports for an extended period are liable to huge profits resulting from the “Golden Ten of coal dropped considerably and port safety hazards such as spontaneous com- Years” attracted many investors including stockpiles approached all-time highs. As a bustion and coal pile stability. power generators, which contributed to result, contract defaults have occurred and Peng, a professor from West Virginia rapid growth in production that did not delay of delivery has been requested. The University’s Mining Engineering depart- foresee the recent decrease in demand, situation may derail the total amount of ment, has spent the last few summers lectur- resulting in oversupply and causing steam coal imports previously estimated. ing in the heart of Chinese coal industry and coal price to decline rapidly, and (2) infla- The high-quality met coals on the oth- filed this report recently from China. He can tion and increases in taxes and fees, and er hand are scarce and traded among be reached at: [email protected].

70 www.coalage.com July 2012 operating ideas

Fiber Optics Report Pendant Line Conditions

Pendant lines are used to support the The signal from the transducer can be tion over time of the pendant lines, it is boom on draglines and electric shovels. translated into data to easily analyze or now possible to predict the exact service Due to the type of work, which is highly identify opportunities to improve life or maintenance schedule on the pen- repetitive, these pendant lines are sub- machine performance. When analyzing dant lines. With proper software, it is even mitted to a large number of tension/load the number of load cycles or the elonga- possible to monitor dipper loads. cycles that influence service life. Traditionally the pendant lines are made of steel wire rope. Steel wire rope has a limited service life when submitted to repetitive tension-tension fatigue cycles. Oftentimes, the pendant lines are replaced too soon. Conversely frequent inspections cause unnecessary mainte- nance downtime. The hourly loss of revenue resulting from pendant life failure or unplanned maintenance are considerable. FibreMax (www.fibermax.nl) has developed iPendants, a pendant line that has an optical fiber and sensor encased in a protective tube situated in between the load bearing fibers. The optical fiber is attached to both end terminations of the pendant, from which connectors make a connection to the interrogation unit. This monitoring system can be used as a stand-alone system or can be easily inte- grated into a monitoring system.

Designed for tough mining condi- tions, all connections are IP-65. The inte- grated optic fiber allows operators or mining managers to monitor the condi- tion of the pendant lines in real time. The operating principle of the iPendant is based on the proven fiber Bragg grating (FBG) technology, which has numerous significant advantages over more con- ventional sensor technologies, according to the developer. The FBG is an optical sensor recorded within the core of a standard, single-mode optical fiber using spatially-varying pat- terns of intense UV laser light. Any devia- tion, caused by, for example, a variation in elongation in the wavelength of the light, is detected by the sensor and inter- rogated by a transducer.

July 2012 www.coalage.com 71 suppliers news

Cardno Acquires Marshall Miller & Associates

International infrastructure and environment services group, Solutions with this. The focal points of the planned cooperation will Cardno Ltd., based in Brisbane, Australia, recently announced its be to support technique and automation. plans to acquire Marshall Miller & Associates (MM&A), a mining In 2011, SDIC Xinji Energy had worked with the RAG-subsidiary and environmental consulting firm headquartered in Bluefield, Va. and accomplished several projects in the areas of logistics, support Around 10% of the $31 million deal is subject to performance tar- technique and planning of preliminary work. Trainings of Chinese gets over the next 12 months with an additional 9% of the purchase engineers on site and in Germany, had been accomplished by pro- price deferred for 18 months. fessionals of RAG Mining Solutions together with experts of the MM&A brings to Cardno expertise in mining engineering, mine mines and maintenance area, topped the engineering- and consult- reserve evaluation, oil and gas exploration, feasibility studies, and ing services. due diligence services for mining and resource projects. Cardno Managing Director Andrew Buckley said the acquisition will pro- TMEIC Purchases GE Energy’s Ownership Interest vide Cardno with new expertise in resources, mining engineering, Toshiba Mitsubishi-Electric Industrial Systems Corporation (TME- carbon credits and energy consulting across a number of key inter- IC) and General Electric Co. (GE) have reached an amicable agree- national markets. ment to separate their industrial drive systems joint venture, TMEIC “With the addition of MM&A, Cardno can now offer clients spe- GE, to reflect changes in business strategies within both organiza- cialist services in greenhouse gas inventorying, carbon sequestra- tions. As a result, TMEIC has purchased GE Energy’s ownership tion and carbon off-set credit verification. Examples of innovative interest in TMEIC GE. TMEIC GE will become TMEIC Corp., head- projects include the U.S. DoE-sponsored carbon capture and quartered in Roanoke, Va. It is a wholly-owned U.S. subsidiary of sequestration project in Russell County, Va. These services are Toshiba Mitsubishi-Electric Industrial Systems Corp., a Japanese becoming increasingly critical to our clients in Australia and across manufacturer of large industrial motors and drives. Both compa- various sectors globally,” Buckley said. nies are working to support implementation continuity on current MM&A also complements Cardno’s expertise in environmental projects. remediation to the private and public sectors. Buckley also noted that MM&A has worked on projects in 21 countries, including Eriez Wager Road Facility Running at Full Production Australia, and there is substantial opportunity to expand MM&A’s Mike Mankosa, Eriez vice president of operations, has confirmed services further into Australia and globally on the back of Cardno’s the company’s newest facility, located on Wager Road in Erie, Pa., is extensive international footprint. up and running at full production. The Wager Road plant houses In line with Cardno’s proven strategy, MM&A’s key manage- the Eriez 5-Star Service Center and handles manufacturing of metal ment will become Cardno shareholders and will remain active in recovery systems, column flotation cells and Hydroflow fluid filtra- the company. MM&A will be renamed Cardno MM&A. tion and recycling equipment. Eriez purchased the 114,000 square foot building, which is locat- RAG Signs Agreement with China’s SDIC Coal ed approximately 15 miles from its Asbury Road World Germany’s RAG Mining Solutions recently signed a two-year agree- Headquarters facility, in late 2011. “In this, our 70th anniversary ment with China’s SCID Coal. SDIC Coal is planning to build further year, we are experiencing phenomenal growth around the world coal mines in the Chinese regions of Xinjiang and Shanxi until 2014. and right here at home,” said Tim Shuttleworth, Eriez president and The Chinese would like to draw on the know-how of RAG Mining CEO. “In addition to our new building in Erie, the company’s opera- tions in Canada, China and India have recently been moved from existing facilities to larger buildings to meet our growing order demand overseas. Our new Wager Road facility is an important component to our continued success as this additional space helps us accommodate our staggering domestic manufacturing volume so we can continue to meet customers’ deadlines and exceed expec- tations.”

FLSmidth Acquisition of Australian Ludowici Now Closed On July 3, 2012, FLSmidth’s board of directors and Group Executive Management reported that, following the approval by Ludowici’s shareholders, and the necessary regulatory and court approvals, the company’s acquisition of the Australian engineering and equip- ment supply company Ludowici Ltd. was completed. FLSmidth paid A$11/Ludowici share corresponding to an enterprise value of approximately $A388 million. Dr. Martin Junker, CEO of RAG Mining Solutions GmbH and Liu Yi, member of board Ludowici is a leading provider of coal centrifuges, vibrating of SDIC Coal, signed a frame contract that settles the further cooperation of both screens and complementary wear resistant products and services companies for the next two years. for the minerals industries. Headquartered in Brisbane, Australia,

72 www.coalage.com July 2012 suppliers news continued and with some 450 of its about 1,100 employees, and approximately our network of state-of-the-art remanufacturing facilities allows us 65% of its revenue being generated in Australia, the acquisition of to apply the solution, all within our organization,” said Tony Ludowici will significantly expand FLSmidth’s presence in this Zampogna Jr., commercial manager of Industrial Solutions important mining region. The acquisition will support FLSmidth’s Advanced Wear Coatings for Cat. “The marketing agreement with aspiration to expand its Customer Services offering as approximate- Shermco leverages their understanding of industrial customers to ly 60% of Ludowici’s revenue is related to services activities, spare identify the best opportunities for Caterpillar technical capabilities parts and consumables. to solve problems, and in the end to reduce costs for the end user— It is FLSmidth’s strategy to become a market leader in six focus the same thing we do with Cat heavy equipment.” industries: coal, iron ore, fertilizer minerals, copper, gold and The metal deposition wear coating processes performed by cement. The acquisition of Ludowici will allow FLSmidth to sub- Caterpillar include laser cladding, twin wire arc spray, HVOF ther- stantially complete its coal processing flow sheet. mal spray coatings, plasma transfer arc weld, cold spray and bore spray. Finish machining to the highest quality standards completes ATMOS Global Introduces Dust Control for Haul Roads the process for each component. ATMOS Global has launched ATMOS-5D+, the site-specific dust forecasting and management platform for haul roads. It is a major breakthrough in environmental dust control and management in mining according to the developer. “Responding to the scientific consensus that mine haul road dust emissions are considered to have a major contribution to the overall dust emissions from sur- face mining sites, ATMOS-5D+ sows seeds of change as a revolu- tionary concept that facilitates the enhanced understanding and control of these emissions,” said Dr. Orestis Valianatos, president and CEO, ATMOS Global. ATMOS-5D+ (for mine haul road dust control) is based on ATMOS Global’s innovative ATMOS-5D system—a risk-based dust management method, that was recently nominated for envi- ronmental excellence in Australia. The system combines meteo- rological and air quality forecasting concepts and applies mathematical and physical sciences proficiency to the task of Shermco will offer Cat Wear Coatings, such as laser cladding shown here. delivering more than 25,000 highly specialized dust impact fore- casts every year.

Komatsu Signs Distribution Agreement with REICHdrill, Inc. REICHdrill, Inc. of Pennsylvania announced a distribution agree- ment with Komatsu Equipment Company of Utah. The agreement appoints Komatsu Equipment as REICHdrill’s exclusive distributor for their line of blasthole and water well drills. Komatsu Equipment’s territory will cover a large portion of the Western U.S. and includes Nevada, Utah, Wyoming, Arizona, California, Colorado, Idaho, Montana, New Mexico, and North and South Dakota. REICHdrill selected Komatsu because of its reputation for providing reliable equipment and responsive service for 60 years in Nevada, Utah and Wyoming.

Cat Wear Coatings Services Available for a Wide Range of Industrial Equipment For more than 35 years, Caterpillar (Cat) has been developing and applying advanced wear coatings to extend the service life and performance of Cat machine components—whether new or remanufactured. Now the same Cat custom services are available to other equipment manufacturers as well as users of large indus- trial equipment. Those services—including tailored research and development work, product validation, and turnkey coating and finish machining by the global Cat Reman network—now are marketed by Shermco Industries, based in Irving, Texas. Shermco is a long established provider of testing, repair, maintenance and analysis of rotating apparatus and electrical power distribution systems and related equipment in North America. “The strength of the Caterpillar research and development capa- bilities enables us to identify and validate a solution efficiently, and

July 2012 www.coalage.com 73 product news Chains Protect Wheel Loader Tires

inter-bedded with 3- to 4-m thick, late-Permian, tuffaceous bands. Tuff is an unforgiving mixture of volcanic rock and min- eral fragments in a volcanic ash matrix formed when a combina- tion of ash, rock and pyroclastic or tephra mineral fragments were blasted into the air by volcanic action then fell to the ground as a mixed deposit. The L-1850 loader’s Michelin X-Mine D2 60/80-57 tires are subject, not only to heavy abrasion from the sandstone and tuff, but are also under constant threat of sidewall damage from the unpredictable content such as razor-sharp, unweathered shards of rock. As the only wheeled loader on site, the LeTourneau is far too valuable an asset to be standing idle for want of a tire when it should be earning its keep loading trucks. Given the current lim- ited availability of giant earthmover tires and high replacement costs, Mangoola has taken the practical pre-emptive steps to save unnecessary expense and unwelcome delays in production. Since fitting their L-1850 loaders with TPCs, Xstrata’s Mangoola mine has worked more than 9,000 hours without reporting any unscheduled workshop visits for tire From its arrival, new, in August 2010, Mangoola has protected repairs or replacements. the L-1850’s drive-wheel Michelins with a pair of FELS CROWN X22 chains (TPCs). Supplied, installed and supported by RUD Since it purchased the Anvil project in Australia from Centennial Australia and manufactured by RUD Kettenfrabrik of Germany, Coal for $425 million in September 2007, Xstrata has invested the TPCs provide the all-round protection that keeps loaders, nearly $1 billion to bring the now-named Mangoola coal mine to such as the L-1850, operating to schedule. production in 2011-12. Located about 20 km west of The robust, tight-meshed, 22 m, ribbed links of RUDs FELS Muswellbrook in New South Wales, the surface mine is set to CROWN encase the tire, absorbing the abrasion which would, deliver 10.5 million metric tons (mt) per year of raw coal. otherwise, in no time, powder the tread and, by deflecting sharp With first class equipment and a skilled work-force, the rock fragments, preventing sudden-death, side-wall penetration. Mangoola project was delivered three months ahead of schedule While extending a new tire’s life up to three times is a significant and US$178 million under budget. Site prep and infrastructure benefit, another big plus of owning RUD TPCs is seen in the improvements kicked off in January 2009 and by February 2010, guaranteed productivity through assured plant availability and a the earthworks, the coal handling and preparation plant, and the significantly reduced cost per delivered ton. Since fitting the rail facility were in place. August 2010 saw commencement of TPCs, the L-1850 has worked more than 9,000 hours without overburden stripping and by November that year the first run- reporting any unscheduled workshop visits for tire repairs or of-mine coal was being stockpiled. Just three months later, replacements. www.rud.com.au February 23, 2011, the first coal wash took place and was entrained just 11 days later. Atmospheric Monitoring System Four teams of earthmovers produce coal. One team relies on Conspec Controls has updated its PLC AMS. This atmospheric a Liebherr R9400 excavator equipped with a high-capacity 22 monitoring system, which uses an Allen Bradley PLC, was designed m³/40 mt bucket and five 195-ton Cat 789 haul trucks. A second to provide continuous monitoring of CO and other toxic and com- team, also engaged in waste removal and coal extraction, con- bustible gases, as well as to give the end user the ability to continu- sists of a Liebherr R9250 with a 17 m³ bucket and six CAT 789 ously monitor and control all other processes for underground haul trucks. Designated for waste disposal duties, the third team mining operations. Monitors placed along the conveyor belt detect uses a Liebherr R966 face shovel sporting a 34 m³/60-mt bucket, any rise in CO or combustible gases such as methane as the coal supported by two, 240-ton Cat 793 haul trucks. The core unit for moves along the belt, providing an early warning of potential haz- the fourth team is a LeTourneau, L-1850 loader, and six CAT 793 ardous conditions. Information is immediately transmitted to an haul trucks. The L-1850 has a 30 m³/54 mt bucket as standard Allen Bradley PLC with a FactoryTalk Software package. On the sur- equipment. Powered by a 1,419 kW diesel engine, the L-1850 is face, the operator can clearly locate the problem area, remotely shut designed to center-load most haul trucks rated for payloads down processes in that section, and restart when conditions permit. between 236 and 327 mt. In this way, monitoring and control capabilities are integrated into Mother Nature had no thought for the miner when she laid one seamless network, enabling personnel tracking and remote of down the Mangoola deposits. Concealed by 15 to 90 m of sand- belts, ventilation fans and other processes. stone conglomerate, the three 9- to 10-m thick coal seams are www.conspec-controls.com

74 www.coalage.com July 2012 product news continued

ASGCO Offers Extreme Wear Protection “Maintenance crews can simply lower the troughing angles Armorite Wear Liners are designed to be an integral part of any bulk to provide easy access to the bars and bolts for quick and safe handling conveyor system. ASGCO manufactures a variety of maintenance,” said Ryan Grevenstuk, product manager, Flexco. Armorite Wear Liners with many options and sizes to choose from, For solid spillage control, operations can turn to EZ Slider Beds, anywhere from smooth to chock bar style. These wear liners are which are engineered to provide containment around the load made out of abrasion resistant, modular, high-wear material, zones. The EZ Slider Beds also feature UHMW slider bars to designed to handle any tough mining application, and can be used effectively seal the load and provide longer wear life. They are to line belts, feeders, grizzlys, chutes and bin impact areas. available with optional CoreTech impact rollers for superior Armorite is a combination of high chromium and molybdenum containment in light impact areas. www.flexco.com white iron, metallurgically bonded to a mild, thick steel plate that provides maximum protection Hydraulic Diaphragm Metering Pumps in high wear areas. It has a mild Neptune Chemical Pump Co., a leading manufacturer of chemi- steel backing that cushions the cal metering pumps, designed its Neptune 500-D Series (Duplex) white iron, enabling it to with- Diaphragm Metering Pumps for frother applications found in stand impact and it’s easily prep plants. The Neptune 500-D Series pumps diesel fuel from weldable with minimal prepara- one pump head to coat the coal and tion. These wear liners have feeds frother (alcohol) from the proved successful in hard rock other pump head, which makes the mining applications. coal float on top of the slurry so it www.asgco.com can be extracted. The 500-D’s Eze- Clean valve cartridges can be Baldor Now Offers Complete Line of Large AC Motors removed from the pump heads Baldor Electric Co. now offers access to the most complete line without having to disturb the of large AC motors from a single, local sales team. The pump’s piping. Neptune’s Variable Baldor•Reliance stock and custom motors are available up to Oil By-pass stroke adjustment pro- 15,000 hp, while ABB induction and synchronous motors are vides better valve performance available up to 100,000 hp. This large AC motor offering includes than variable-linkage designs. both NEMA and IEC configurations, assuring customers they will www.neptune1.com get the motor that meets frame, enclosure and duty cycle stan- dards for any application, anywhere in the world. Every large AC motor is designed and built for reliability, energy savings and performance. www.baldor.com

App Records Safety Observations The Behavior-Based Safety (BBS) iTrac app allows safety person- nel to document individual behaviors by location and record actions as either safe or unsafe. In addition, users of the RCI Safety BBS iTrac app can also post comments related to specific observations and generate/view reports, all from the conve- nience of an iPhone or Pad. www.rcisafety.com

Conveyor Load Zone Protection Flexco recently announced the release of two new products to improve performance in belt conveyor load zones. EZ Impact Beds provide simple and effective protection in the load zone, while EZ Slider Beds provide containment to reduce spillage. With the same rugged durability found in the heavy-duty DRX Impact Beds, EZ Impact Beds are available in light-duty and medium-duty options. Much like the DRX Impact beds, these beds feature impact bars for absorbing material impact, while the additional long- wearing UHMW slider bar is ideal for sealing the load zone. Specification and installation of the bed is made easier with adjustable trough angles and universal components.

July 2012 www.coalage.com 75

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July 2012 www.coalage.com 79 legally speaking Diesel Exhaust in Miners Study Clouds the Air

BY SCOTT E. STEWART AND MARK SAVIT

Since the mid-1990s, diesel engine sibilities. Manufacturers, importers and employers are required to and emission control technology has treat IARC findings as a source “establishing that a chemical is a car- improved significantly as the cinogen...for hazard communication purposes.” 29 C.F.R. Environmental Protection Agency §1910.1200(d)(4). (EPA) has imposed ever-tightening In addition to current and potential regulatory burdens associated emission control and fuel standards with revising MSDSs, IARC’s reliance on the DEMS creates “evidence” pursuant to its Clean Air Act authori- that may be used by plaintiffs’ lawyers. The first such lawsuit relying on ty. In its most recent nonroad diesel rulemaking, the EPA estimated the IARC finding, and the DEMS study that informed it, was filed in a that standards imposed for nonroad land-based diesel engines typical- California court against three of the world’s largest integrated ly used in construction, agricultural, industrial and mining operations petroleum companies on June 13, 2012. A wave of similar lawsuits will achieve particulate matter (PM) reductions in excess of 95%. As a could follow against other industries reliant on diesel power. We can result of a variety of programs, including access to funding under the also expect that environmental activists will use the DEMS and IARC to Diesel Emissions Reduction Act, the EPA’s National Clean Diesel bolster their advocacy and lawsuits. Campaign is effectively addressing older diesel engine emissions with- The National Toxicology Program (NTP), also part of HHS, is tasked out resorting to new job-killing regulation. by Congress to compile and publish biennially the Report on Ironically, against this backdrop, the National Institute for Carcinogens (ROC)—listing all substances which are either “known to Occupational Safety and Health (NIOSH) and the National Cancer be carcinogens or may reasonably be anticipated to be carcinogens.” 42 Institute (NCI),1 released the Diesel Exhaust in Miners Study (DEMS) U.S.C. § 241(b)(4). The next edition of the ROC is under development, in 2012, a deeply flawed and expensive endeavor to examine the due to be published in 2013. In light of IARC’s wholesale acceptance of potential health effect of diesel exhaust exposure on miners working the flawed DEMS there is a significant risk that the NTP will follow suit. in nonmetal mines dating back over a half century. NIOSH and NCI Just as with IARC findings, the ROC is another source that must be used concluded that there is an increased risk of lung cancer death as lev- in the U.S. for establishing that a chemical is a carcinogen for hazard els of exposure to diesel exhaust increase. Even after acknowledging communication purposes. that the data from the study are not sufficient to estimate the risk of The environmental justice community has long advocated for the low level diesel exhaust exposure on the general population, the NCI EPA to revisit its assessment of risks posed by diesel exhaust. The press release asserts the DEMS findings “suggest that the risks may EPA’s National Air Toxics Assessment (NATA) program is a national- extend to other workers exposed to diesel exhaust in the U.S. and scale assessment program focused on cancer risks and noncancer abroad, and to people living in urban areas where diesel exhaust lev- health effects of a variety of air toxics. Although the program is not els are elevated.” designed to characterize risk sufficiently for it to be the sole source Although NIOSH and NCI attempted to eliminate certain con- for regulatory action, it is used by national, state and local policy- founding factors by focusing on nonmetal mines, the DEMS does not makers as a source of information driving regulation. In 2011, the adequately address other confounding factors including how cigarette EPA released its most recent NATA. As it had with previous NATAs, smoke and non-diesel airborne pollutants impact workers’ cancer the EPA noted that there is a potential cancer risk from diesel PM, risks, the use of carbon monoxide and horsepower as surrogates for but the available data is inadequate to support a quantitative esti- diesel exhaust, and modeling 1998-2001 air survey data to the 1947- mate of the carcinogenic potency of diesel PM. In its 2002 Health 1997 study period where no actual diesel air monitoring data existed. A Assessment Document for Diesel Engine Exhaust, the EPA conclud- particularly glaring issue is that the DEMS concludes the risk of lung ed that diesel exhaust was “likely to be carcinogenic to humans by cancer tapered off for heavy smokers in the highest exhaust exposure inhalation,” but because of the uncertainties and assumptions in the group. The science has been called into question and the process studies reviewed, EPA did not believe the evidence supported a undertaken by the DEMS researchers has been opaque. Even in the quantitative exposure/dose-response relationship. Environmental face of congressional demands, NIOSH and NCI have failed to disclose justice advocates will certainly use the DEMS as a basis to push EPA data and analysis relied upon for the DEMS conclusions. to develop a quantitative risk estimate for diesel exhaust. There is The ripple effect from this deeply flawed study, which methods and significant danger that EPA will embark on this course in future analysis were developed behind closed doors and away from public NATAs, thereby furthering the reach of the faulty DEMS. scrutiny, is already being felt both nationally and internationally. The conclusions reached in DEMS are, today, far-reaching. If this On June 12, 2012, the International Agency for Research on Cancer deeply flawed study continues to be relied upon by policymakers and (IARC), part of the United Nation’s World Health Organization, advocates, unsound decisions will further muddle efforts to rationally upgraded its diesel exhaust classification to “carcinogenic to control diesel exhaust emissions. humans,” citing DEMS. Although IARC claims its evaluations do not directly recommend legislation or regulation, it recognizes the evalu- Footnotes ations are designed to be used by national and international health 1 NCI is part of the National Institutes of Health (NIH), which is an and environmental regulatory authorities in “making their risk assess- agency of the Department of Health and Human Services (HHS). ments and taking preventative action.” In fact, in the United States, IARC findings are much more powerful. Although not subject to Stewart is a partner in Environmental Law practice at Patton Boggs LLP, notice and comment rulemaking or other standard public scrutiny, focusing on environmental litigation and regulatory matters. He may be nor related to current diesel engine clean technology, IARC findings reached at [email protected]. Savit is a partner in the Denver office directly affect companies’ Hazard Communication Reporting respon- of Patton Boggs, LLP. He can be reached at [email protected].

80 www.coalage.com July 2012